This is page is created for you to know what are the main investments and what are the main characteristics of each of those investments:
- Stocks. Are the most popular investments and there is a reason for that. Over long term it might offer the best return compared to all the range of other investments. The variety of stocks and their risk-return level is very wide. Return of stock depends on many profitability ratios.
- Bonds. Bonds are stable investment and pay pretty stable interests for their holders. The bond market is huge. However, if you are investing in bonds, you have to know how to invest.
- Real estate. It is as old investment class as old is race of the people. This is also an answer why real estate investments are so popular. Real estate investment is in between of stock investment and bond investment.
- Investment funds. May have many assets inside. Basically it is a well diversified portfolio of investments that invest in some asset class depending on investment strategy. Most popular are stock and bond investment funds. In last years the popularity is gained by index funds, especially by ETFs.
- Derivatives. Are investment instruments suited for professional investors. The are many kinds of derivatives (options, futures, swaps etc.) and all of them have unique characteristics.
- Commodities. Commodities are some basic resources or raw materials that are needed in many manufacturing processes. Commodities are important in financial markets but aren't the best investments.