Investment can be a tricky task. With so many investment types it becomes difficult to judge the perfect one. Different investment types have different return and hence it has a diverse platform for all types of investor. The investment makes oneself a self-made man like Adam Jiwan. One has to make the right investment decision to be rich. However, before that one has to learn of the different investment types before.
Bond
A bond is an investment policy that is given by the company or an organization. You buy the bond of a particular company and they give you an interest rate in return for the loaned money. At the date of maturity, you receive back your invested amount. The benefits and drawbacks are:
- Benefits
If you are thinking of keeping your money in then saving then deep the pal and put it in the bond because the bond returns rate greater than that of savings.
- Drawbacks
The interest rates are not fixed and depend according to the market. Hence if distress falls upon you then the return might not be that great.
Stocks
You get an ownership of a company if you look to buy stocks of a company. The number of stocks you buy, the more right you have over the functioning of the company.
- Benefits
This gives a greater return. You can buy and sell the stocks whenever you want. Hence you have the flexibility. The profit and the loss are in your hand because it always depends on the decision you take.
- Drawbacks
There is no surety of which the price might go up and when it might come down. There are various factors that govern the price points. No one can ever know it and hence it provides a great degree of risks.
Annuities
This is a retirement plan scheme. The investment in here guarantees your security in the future. you pay off the premiums while you are young and you get your interest once you are unable to work.
- Benefits
This has a guarantee in the old age with a confirmed income.
- Drawbacks
The premiums that you give in here cannot be received until your retirement and at the time of maturity, you are liable to pay taxes on the amount.
Conclusion
There are more investment ways; however, these are the most basic ones.
