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Types Of Investments

Before making up your mind to invest in anything you should try to find out what type of investment will best suit your standards and whats best for you to go into as an investor.

Growth Investment
Growth investment  is a stock-buying strategy that  focuses on a companies capital appreciation. It is suitable  for long term investors who can withstand the ups and downs of the market.

Defensive Investment
Defensive investment places more importance on generating income as opposed to growth. They are seen as lower risk investment.

Cash Investment
Cash investment has a lower return level. They offer no capital growth but deliver a regular income. They include normal bank accounts, high interest savings and term deposits.

Shares can grow the value of your initial investment over a medium to long term. Shares are one of the most risky types of investment as their value may fluctuate as frequently as daily. Some shares pay you part of the companies yearly profits, the pay is called a dividend. They represent part ownership of a company or corporation which entitles you to some percentage of their earnings.

Properties include houses, lands, cars etc and just like shares, their value can also fluctuate. You can invest by buying a property and selling after a certain period to gain. You can also invest through a property investment fund.

Fixed Interest Investment
Fixed interest investments are normally issued by the government, corporations or banks to raise funds. In this type of investment, the government borrows money from investors and offers an interest rate in return.
They also offer lower levels or risk but also lower return levels.

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