Question

What are the types of investment and describe.

Answer 1

Types of Investments

In simply investment is the sacrificing present consumption for future gain. That is the money invested with an expectation of profit.The different types of Investments available for today, mainly the all investment categorized three form.They are real investment, financial investment and non securitised financial securities.

1. Real Investments

Real Investments are traditional type of Investment.It is physical investment and it include real estate, gold,art etc.

Real estate : It refers anything permeantly affixed to land. Investment on fixed asset and earn more than 50 per cent return.eg:land, industrial building.

Commodities : Goods tarded on an exchange or cash market.Invest in commodities through a futures contact. eg. Gold , rubber etc

Bullion: Best traditional method of investing and guaranteed reutrr such as ,gold, diamond , platinum.

Art: It alternative investment strategy and also extremely risky.so lot of gain is possible.

2. Financial investment

This type of investment are freely tradable and negotiable.

Debts: These instrument earn fixed interest for fixed period of time.They are low risky and low return such as Bonds, Treasury bills

Equities: This investment carry more risk and no assured return also they are real owners of company.stock is example.

Mutual fund: Investor not directly invest in market they invest in mutual fund scheme.They invest in different securities.

3. Non securitised financial securities

It not tradable , negotiable and transferble securities.It include bank deposit,PF , life insurance etc.