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most people have heard of stocks and bonds, but there are a ton of different ways to invest your money mutual funds, cds, real estate... seemingly list is endless.
when you buy an ownership investment, you own that asset - something that's expected to increase in value. ownership investments include:
- stocks, also known as an equity or a share.a stock gives you a activities in a company and its profits. basically, you get the partial ownership of a public company. a large percentage of your portfolio should probably be made up of stocks.
- real estate, according to Investopedia, any real estate you buy and then rent out or resell is an ownership investment, but it can not be classified as an alternative investment. by their terms,the home you own fulfills a basic need, so it doesn't fall under this category.
with lending investments, you buy a debt that's expected to be repaid. you're sort of like a bank. generally, these are low risk, low reward investments. this means they're thought to be a safer investment, but their return is usually low.
: "james bond" is a more umbrella term for any type of debt investment.when you buy a bond, you loan money to an entity (a corporation or the government, for example) and they pay you back over a set period of time with a fixed interest rate. another big chunk of your portfolio will probably be made up of bonds. - so we've covered how different investments can generally be categorized as ownership, lending and cash. those categories are broad descriptors,but they're good in out how different types of investments on the
venture capital: this is money you give to a startup or small business, with the near that it will grow, and you 'll get a return on that money. "with so many terms associated with investing, knowing what exactly to invest in can seem complicated. but once you view these terms into categories.it's actually pretty easy to understand how they work.
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