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Types of InvestmentThere are many types of investments. Mainly classified into four forms of assets:
Brief Description on Different Types of Investments:
Short-term deposit offers total liquidity. It means investors can withdraw all their money whenever they need. It is perfect option for short-term savings or emergency funds.
However, it is not a valid option for medium of long- term deposits.
Bank Fixed Term Investment: The lump sum money deposited for a set term usually six or twelve months is locked away by the bank for a fixed period. Here, the investors get higher interest than a straight savings account. Depending on interest rates, this is investment option is the best for medium or short-term investment.
Usually, a bond is not an ideal option for short-term investment. Instead of bonds, the small investors are supposed to go for managed funds. It would be good for small investors not to directly invest in the bonds.
Moreover, the losses incurred in property investments are not published. Prior to investing in any property, the investors need to understand and manage different issues and aspects of property investment.
There are two types of Property investments: Direct and Indirect Property Investment.
Direct Property Investment: The investors have to manage the daily administration such as finding tenants, bond and rent collection, and looking after the maintenance issues. Or else, go for property Management Company that charges fees for these services.
Indirect Property Investment: The investors have options to invest either in managed investment fund or superannuation scheme. Here the investors acquire ownership without need of actually finding the property and doing the hands on management. It offers the diversified benefits for the average investors. .
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHORJohn Elton owns and operates a Best Penny Stocks Picks website to help other investors with their stock decisions. He also operates a Home Based Business earn money online site to help entrepreneurs gain experience and wealth. |
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