Question

Compare between two different investment categories (e.g. cash vs shares, etc.) in terms of their historical returns.

Answer 1

Broadly there are three basic investment categories which are instrumented and then purchased with an expectation of it to grow in future. and the 3 types are Ownership, Lending and Cash.

Ownership:

"High Risk and High returns", Anything associated with owning fully or portion of Asset or Instrument. some of the investment avenue associated with ownership are the most volatile and high profitable ones percieved by most of the people . some of the examples are shares The following are examples. are Shares, Business's and Real estate an buying this instruments gives you a ownership and inturn you will have a claim on profits that Shares and Business gives you and value apreciation of Real estate property.

Lending Investments

"Low Risk and Moderate returns" , These instruments are associated with lending money with an exchange of Fixed or floating interest rate agreed upon at the time of Lending. and som eof th examples are Corporate and sovereign Bonds, Treasy Bills, notes, Fixed deposit and so on.

Cash Investment

"Low Risk and Moderate returns" , These instruments are associated with those instruments which meets you Quick and short term liquidity needs like Hard Cash, Savings account and soon.

Based on the Financial goals, Time Horizon, Short term liquidity needs and risk profile on has to invest trading off between Risk and return associated with the instruments.