Book Cover Small

Chapter 3 - Investment Types (Sneak Peak...)

“You get out of an investment what you put into it, so the first decision you have to make is how much time you are prepared to devote to the initial task of acquiring a basic knowledge of investment.” – James D. Slater, British investment columnist.

Today, investors have a bevy of investment types to choose from. Each carries their own distinctive personalities, advantages, and inherent risks. As an investor, it is wise to allocate your financial assets (i.e., your cash) across different investment types. Placing all your cash in one investment vehicle or asset class may be risky because if that particular type of asset performs poorly you will not be in a position to watch your investment tree grow. Likewise, you may be missing out on other opportunities where other asset classes are prospering. It would take much too long for me to cover all the available investment types. Nonetheless, I will cover the most popular ones, namely:

Savings Accounts, CDs, and GICs
Bonds
Stocks
Mutual Funds
Exchange-Traded Funds (ETFs)
American Depositary Receipts (ADRs)
Commodities

There is money to be made in all these investment types. In some of these, your money will grow slowly, but at a steady pace. In others, your money may grow more quickly. Each type has its own unique qualities and risks. Which ones you decide to include in your investment portfolio depends on your age, your personal investment objectives (refer back to Chapter 1), your personal investment philosophy or style, and your tolerance for risk. If you are not sure what your investment philosophy or style is at this particular point in time, don’t worry about it. By the time you finish reading this book you will already have a good idea about how, why, and where you want to invest. In addition, with time you will gain experience and wisdom about the investment world. You will have triumphs but you will also make mistakes along the way. You will learn from those mistakes. Without further delay, let’s take a look at what’s available out there...//

To read more, please Buy the book...