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Investment Categories

We screen hundreds of companies annually to separate the wheat from the chaff. Those that meet our investment criteria go through in-depth and rigorous analysis,

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Investment Categories

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  1. ROCK TRADING INC REVIEW OCTOBER 26 Investment Categories 1

  2. Investment Categories Investment Categories Investment is the act of placing money into a resource that has the potential to be profitable over the short, medium, or long term. Before choosing a certain investment type, it is crucial for a novice investor to grasp the many forms of investments. A wise investment can be used to build wealth for the future Rock Trading Inc Review. Various categories can be used to categorise investments. 1. Considering the risk involved the conservative the moderates In terms of low-risk investments, conservative investment refers to those where investors like to place money in interest-bearing savings accounts, the money market, mutual funds, etc. These investments are meant to last a long time. Modest investments typically relate to low- or moderate-risk holdings in cash, bonds, real estate, etc. Investments with a high degree of risk are referred to as aggressive.Investors have the chance to become wealthy in this situation extremely quickly, but they also run the danger of losing the same amount of money. 2

  3. 2. Considering the time frame during wh 2. Considering the time frame during which investments produce returns returns ich investments produce a. Temporary b. Prolonged Stocks that produce results even within a single day are referred to as short-term investments by default. Bonds, mutual funds, and other investments are considered long- term. 3. Depending on 3. Depending on whether or not it is economical whether or not it is economical an economic Unrelated to finance Other than the financial instruments in the money market, non- financial investments can be made in anything. Real estate is one example of this. Land and property are now attractive investment possibilities due to their rising costs. Purchasing gold is still a possibility. Especially in today's uncertain market conditions, gold is a precious metal that consistently produces value for its investors. Financial investments can be made in a variety of financial instruments or securities. 3

  4. i.Equities are assets that reflect ownership in a corporation. They are offered to investors on the stock market or through initial public offerings (IPOs). In general, it is anticipated that they would provide favourable outcomes over time. ii. On behalf of investors, mutual funds' holdings of equities are managed by fund managers. When a business and an individual buy shares of the same company jointly, the arrangement is known as a mutual fund. Mutual funds can be purchased from the fund directly or through brokers. Non-managed mutual funds are those that are based on an index, such as the Dow Jones Industrial Average, as opposed to managed mutual funds, which are those that are managed by financial experts. The amount of profit realised from non-managed funds varies with changes in the index's price. Mutual funds are consistently regarded as a smart choice for small investors who don't have a sizable sum of money to invest but nonetheless want to benefit from investing. They always find it to be a good, low-risk, low-gain alternative. iii.For the purpose of raising cash, businesses, financial institutions, and governmental organisations all issue bonds. Low risk and good rewards are what they provide. iv. Other solid and highly liquid investing choices include cash equivalents like treasury notes and money market funds. 4

  5. v. Stocks are a high-risk, high-gain investment option for stock market investors. In order to develop their stock management efficiency and expertise, investors must have access to a variety of market research Rock Trading Inc Review information. However, a potential investor should be aware of the following However, a potential investor should be aware of the following when making an when making any kind of financial investment: y kind of financial investment: Before making any decisions, investors should take into account their financial status and ambitions. They should also take into account their tolerance for risk. Research and study of the financial market are essential for avoiding losses. Referrals from friends, family, and coworkers to a qualified advisor and broker can serve an investor well. 5

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