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 funds to which you belong, which is managed professionally by a fund manager who will invest in a variety of investments on your behalf.


Property

Property includes buildings or developments, such as office buildings and industrial centers, etc. The return on investments in this class comes from a combination of rental income, as well as the increase in value of the property itself.


Others:

Others include collectibles, commodities, derivatives, overseas investments, etc.


Main Features of Investment Products
There are many different features for each investment.

They can be categorised as follows:

  1. Cash (on call)
  2. Fixed interest
  3. Shares (Equities)
  4. Managed funds
  5. Property
  6. Collectibles
  7. Offshore
  8. Commodities
  9. Derivatives