Types of Investments

Investment Groups
The types of investment options you will have can be classed into 6 groups.

These are:

• Cash
• Interest Bearing
• Shares
• Managed funds.
• Property
• Others

Cash:
Cash simply means money placed in the bank deposit or the short-term money market to earn interest. It is the safest form of investment of all the classes, but it does provide a lower return over the long-term.

Interest Bearing
This investment includes loans, such as bonds, which are loans to governments, and debentures, which are loans to companies. They provide a return through interest earned, as well as from gains or losses when traded in the marketplace.

Shares:
Shares are also called equities. When you buy shares you purchase part ownership of a company. The return from the shares in the way of income is what is known as dividends and you can also benefit from the capital gains when the shares increase in value.

Managed Funds:
Managed funds is exactly that. It is investment fun

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