Money is one of the most valuable assets you can have. It’s important to invest them and diversify as much as possible. You can handle the investments yourself, or you can find a company to do it for you. Either way, it’s good to know the various options you have to grow your money.
Before we start, let’s try to talk about some of the words you might encounter:
- Portfolio – a collection of all your investments
- Portfolio managers – persons or companies that can manage your assets for you. Firms like Stratford Management Inc South Korea are known for their strategic approach and experience.
- Assets – these are owned resources with the expectation of value increase in the long run.
- Holdings – these are the particular assets that are in your investment portfolio.
- Asset classes – these are groupings of assets with similar traits such as bonds, cash, and stocks.
Here are the types of investments and what they can do for you:
The concept is that you buy debts with the expectation of being repaid; it functions like you’re a bank of some sort. These investments have low risk and low reward, and they’re considered to be relatively safe. You don’t need to have a lot of experience to handle this kind of investment.
Here are some lending investments you can have:
- Certificate of Deposit (CD)
- Treasury-Inflation Protected Services
- Savings Account
You can rely on lending investments to give you small and steady returns.
The concept is that you own various assets with the hopes that their value increase over time. This type of investment requires time and knowledge, but you can also have a person or company to take care of it for you. Most of these assets can be affected by current events and nearby activities.
Here are ownership investments you can have:
- Real estate
- Precious objects
People often get ownership investments that have the potential to grow.
This type of investment can easily fall into any of the leading investment categories. Funds aren’t specific investments but considered to be a group of investments. These are more complicated, and they have rules, regulations, and laws you need to be familiar with.
Here are the funds you can have as investments:
- Mutual funds
- Hedge funds
- Exchange-Traded funds (ETF)
- Index funds
There are many alternatives to traditional investments. These can be classified as lending or ownership investments, depending on the method in which you purchased them. They are a bit more complicated, and they could require expertise in evaluation and identifying value.
Here are the alternatives for investment:
- Real Estate Investment Trusts (REIT)
- Precious metals
- Venture capital
There are different types of investments that can cater to your comfort and style. If you’re a beginner, you can start with the low-risk markets that are easy to understand. When you think you can play for higher returns, you can seek the help of professional investment firms or portfolio managers.