6 Different Types of Investments to Consider

6 Different Types of Investments to Consider
  • Opening Intro -

    When you are looking to enter the investing industry, you have to choose a type of investment that works for your needs.

    There are many types that you can make, ranging from investing in private businesses to joining the stock market.


Find six of the most popular investment types in the list that can be found below.

1. Private Assets

The first type of investment that you should consider is to invest in a private asset, whether that be a start-up company or even a real-estate opportunity. You can even invest in a full-service SPV which will give you some liquidation and return as the price increases.

These private investments allow you to start small and grow with the company or with the asset that you provide, receiving money as the value goes up. There are endless opportunities ranging from the two listed above to even crypto-currency and art projects that others have made.

2. Bonds

A bond requires that an investor makes a loan to someone who they want to invest in, whether that be through the government or through a business.

When the bond reaches maturity, you will earn back however much money you put down as a loan and the interest that it has accrued.

This is generally a low-risk investment, but it could go under due to a business failing or even the government being in debt. You may earn less of a return on these than you do on a classic stock market investment, however.

3. Stocks

A stock is the most common type of investment that you have probably even heard of, and may even think of first when you are considering investment types.

Stocks allow you to buy a small part of a company that gives you some sense of a return when the company is doing well.

With a stock, however, you run the risk of losing money as well when the company is not doing well and is losing profit. It truly follows the patterns that exist in the popularity of a certain brand or a certain group of brands as are seen in the NASDAQ stock.

4. Mutual Funds

The next investment type that you should consider is a mutual fund. A mutual fund will not be held by you alone, however, as it entails a group of investors who split the returns that are earned on the market.

You give your money to the mutual fund manager who determines the best places to put the money so that you can earn the most possible. You do always have to pay the manager, however, whether you are making a profit off of the investments or not.

5. Exchange-Traded Funds

Exchange-traded funds are a relatively new type of investment that you can make as they have only existed since the 1990s. They are very similar to the stock market in that they rise and fall with the patterns that exist within how well the market is doing.

The ETF does include a group of investment types, ranging from cash, stocks, private assets, and even bonds as having been aforementioned. You do not have a money manager that you have to work with though, and these are traded on the market just like stocks and shares in a company are.

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6. Real Estate

Though previously mentioned in the private asset section, it is important to consider real estate as an investment type on its own. The best way to make a decent profit off of the real estate market is to purchase homes at a price that is less than 50% of what the home is actually worth.

You can directly buy the property or you can buy the property through an investment trust. The trust is made up of a group of investors who are trying to sell the trades in the property on the market.

These are just some of the investment types that are available on the market today. You can make a profit off of virtually any type of financial institution or anything that can be traded, however. Make sure to choose wisely so that you can make the maximum return that is possible.

Image Credit: different types of investments to consider by twenty20.com

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