Monthly Archives: May 2017

investments-type

Three Different Types of Investment

Becoming financially independent can be a daunting task for anyone who lives in a country where the economy is unpredictable. It is imperative for you to take measures that can help you income grow exponentially over time. This is the primary reason why many financial experts like GEC encourage people to invest some of their earnings.

Investment is the act of placing your funds into an endeavor with the expectation of earning additional profit or income. It is the fine are of making your money work for you. It is vital that you keep in mind that investing is not a get rich quick scheme. Prudent investing requires discipline, time, and patience.

There are many different investment opportunities around today. It is vital for you to focus on investment funds in singapore that have a proven track record. This can help you avoid falling for investment schemes that are only designed to take your hard earned money. Let’s take a close look at three viable investment opportunities that can increase your net worth over time.

Bonds

Bonds are securities founded on debt. You are lending your money to a government or company when you purchase a bond. The company or government will repay your initial investment with interest.

Bonds are relatively safe investments. There is a slim chance of you losing your initial investment, but the returns on bonds are marginally low.

Stocks

Purchasing stocks gives you an opportunity to become a part owner of a business. As a stockholder, you are entitled to vote at the shareholders’ meeting. You will also be in position to get any profits (dividends) that the company allocates to its shareholders.

You can make a significant amount of money from purchasing stocks, but it is important for you to remember that stocks are volatile. Their value fluctuates daily. There will always be a possibility that you may lose your investment. Performing your due diligence on the prospective company is one way of lowering your risk when it comes to purchasing stocks.

Mutual Funds

A mutual fund is a big collection of bonds and stocks. As the owner of a mutual fund, you are placing your money in a pool with other investors. You and the other investors are paying an experienced and professional manager to choose specific securities that will yield profits.

There are different types of mutual funds. Some are set-up to focus on buying small stocks, large stocks, or bonds. Select a fund that will be suitable for your investment goal.

Conclusion

You must learn how to invest if you are interested in attaining financial security. Investing your funds in any of the three investment vehicles above can help your income grow significantly over time.