Which Investment Type is Right
Overall there are three different kinds of investments.
These include stocks, bonds and cash. Sounds simple right!
Well, unfortunately it gets very complicated from there.
You see each type of investment has numerous types of
investments that fall under it.
is quite a bit to learn about each different investment
type. The stock market can be a scary place for those
who know little or nothing about investing. Fortunately
the amount of information that you need to learn has a
direct relation to the type of investor that you are.
There are also three types of investors: conservative,
moderate and aggressive. The different types of investments
also cater to the two levels of risk tolerance: high risk
and low risk.
investors often invest in cash. This means that they put
their money in interest bearing savings accounts, money
market accounts, mutual funds, etc. These are seen as
safe investments that grow over a long period of time.
These are also low risk investments.
investors often invest in cash and bonds and may dabble
in the stock market. Moderate investing may be low or
moderate risks. Moderate investors often also invest in
real estate providing that it is low risk real estate.