What are the different types of investment products available?

17th Dec 2009 by Gary

Investment products range from those just there to preserve your capital for the most part, those that grow your capital, and those that do both. There are obviously exceptions to these, but that's the basic purpose behind most investment products. On the lower end you have safe investments like US Treasuries, Certificates of deposits, money market funds and money market accounts. Then you can have equities and bonds, which have more risk, but will usually give you a better return, although stock has no guarantee of performance, and so is the larger risk, but also that which brings the greatest potential rewards as well. Normally a balanced portfolio will include all of these in various measure depending on your age and investment goals. There are other types high returning investments like commodities and emerging markets, but they also come with much higher risk.

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com