Type of investment pdf

Investment fundamentals aims to demystify the process of using money to make money and give you a basic introduction to the key investment topics. Think of the various types of investments as tools that can help you achieve your financial goals. In finance, investment means the purchase of a financial product or other item of value with an expectation of favorable future returns. Each broad investment typefrom bank products to stocks and bondshas its own general set of features, risk factors and ways in which they can be used by investors. This tutorial will also teach you about the building blocks of the investing world and the markets, give you some insight into techniques and strategies and help you think about which investing strategies suit you best. Investment, as the dictionary defines it, is something that is purchased with money that is expected to produce income or profit.

Therefore, financial assets are more popular for many. In general terms, investment means the use of money in the hope of making more money. The government normally makes such a type of investment. There are many forms of bonds including investment grade corporate bonds, high yield corporate bonds, emerging market bonds, nominal government bonds and inflation linked bonds. Well introduce you to alternative investment vehicles in. The word investment has become muddled with overuse. Acropdf a quality pdf writer and pdf converter to create pdf files. In fact, theres an investment designed just for people like you. There are four main investment types or asset classes that investors can choose from. An investor can invest directly in securities or indirectly. Fixed interest investments such as bonds pay a fixed dollar income in the form of a coupon payment for an agreed period of time. Between june 30, 2009, when the great recession ended, and april 30.

An index fund is a type of mutual fund that passively tracks an index, rather than paying a manager to pick and choose investments. It is also easier to sell the stock faster than the car or plot. Investing can seem complicated with a lot of different things that you could choose to put your money into. Mutual funds allow investors to purchase a large number of investments in a single. Induced investment is positively related to the income level. It refers to the investment made on houses, roads, public buildings and other parts of infrastructure. Business fixed investment means investment in the machines, tools and equipment that businessmen buy for use in further production of goods and services. Investment fundamentals an introduction to the basic.

Investment is the employment of funds with the aim of getting return on it. Direct investing involves the purchase of a security. Indirect investing involves investing in mutual funds, closedend funds, or exchange traded funds. Get a quick overview of the most common types of investments. The most common are shares, fixed income securities. The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. But most of the rest of the time, gold has been a lousy investment.