Investment refers to
the accumulation of some kind of asset in hopes to get
a future return from it. The fundamentals for all types
of investment are the same. The investors basically are
buying risk from their investment, the more risk they
take from their investment, the higher price they can
sell for it.
Different persons of
varied ages also need different type of investment plan
to give them better return. Conservative & old people
prefer investing in gradually growing companies with low
risks like utility and consumer goods. Aggressive investors
prefer fast and high earning stocks with high investment
risks like foreign and technology sectors.
Three Major Investment Instruments In The Market Today
i.) Stocks Investment Plan
Stock represents a share of ownership in a corporation.
The returns from stock investment are based on a company's
dividends and profits and how investors assess its potential
for future profits. From our historically survey report,
stocks investment have provided the highest investment
returns over time, but stock prices fluctuate and sometimes
dramatically. Investors typically choose stocks ibnvestment
for growth of capital, which can help them stay ahead
of inflation over the long term.
ii.) Bonds Investment Plan
Bonds are one type of IOUs issued by governments, government
agencies, and corporations. The changes of interest-rate
will directly affect the prices and returns of bonds investment,
but in general, bond prices fluctuate less than those
who invest in stocks. Investors typically choose bonds
investment to receive income and to diversify stock portfolios.
iii.) Cash Iinvestments Plan
Cash investment is a very short-term IOU issued by a government,
corporation, bank, or other financial institution. Cash
investment basically using the interest payments from
such IOUs, money market mutual funds provide incomemost
often, less than that provided by bond fundswhile
maintaining a stable price of $1 a share. Investors typically
rely on this type of fund to stash money they'll need
for emergencies and short-term goals.
Diversify Your Investment
Diversification is the
key to good investment management. Diversify your assets
and investments across various groups can reduce your
risk and help you to earn profitable returns over certain
period. Financial experts normally suggest you to hold
a mix of investments to help you to reduce the volatility
or fluctuation in market value for your investment portfolio.
That's because diversification can spreads your invetment
risk around. You also can diversify your investments based
on your comfortable level. Investments such as bank deposits
can help you earn a fixed interest. Stocks and mutual
funds promise more growth potential. Investment in property
can bring you good returns over a period of time. Investments
diversification ensures that you don't lose everything
if a particular investment doesn't work well.
Best investment plan
indicate towards balanced investment in risky and safety
sectors to maintain an equitable distribution of your
money and investment risks so you can earn up to maximum
return. Investment plan need to place lot of importance
on time. Long-term investment pay well and safe at the