Investment: What they are and Types explained

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Type of investments? Which one should I be doing?

Investment is a planned method for deriving future income from assets traded for money. As daunting as it may sound it is a beneficial contingent endeavor that promises profit in the long run. It can range from crypto to stock to livestock to even oneself; anything that promises legal returns can fall under the category of “investment”.

Knowing this can enclose the space of comfort and spiral out possible worries as to what kind of investment would guarantee future profits, at least, one that can make you sleep well with both eyes closed, perhaps, in retrospect you might have been hoodwinked by number games to capitalize on declining market values and products thus resulting into failed investment but that shouldn’t necessarily sway you away from investing

 Below are 9 types of investments you can do and how they can be operated.

1.      Commodities

When we talk about commodities, we are talking about animated products. Physical goods; are more common in markets where the exchange of goods and services affects the financial stake of investors (the buyers and sellers) in commodities.

 Investing in commodities deals mainly with risk attached to natural occurrences; a simple change in weather can greatly impact the price of rice, tomato and other Argic produces likewise demographic location can be a reclining factor. So far, there are four types of commodities an investor can invest in they are; energy (solar panels, crude oils, natural gases, etc.), agriculture (tomatoes, corn, maize, beans), Livestock (poultry, cattle, etc.), Metals (gold, zinc, copper, silver, diamonds).

2.      Annuities

The most basic definition of an annuity is a payment made annually under a contract in order to secure retirement income. It is a consecution of intermittent payments made at intervals; it may tend to be a variable or a fixed one, that s to say the date of payment can be fickle or concrete.

It may be an attachment to stock, one under probability, or insurance that may last till death or for only a brief period depending on how the payments are made.

3.      Certificate of deposit

This involves you handing over money to the bank, a really specific amount, for a predestined period, and when the time elapses you are handed back the same amount with interest. See this as lending money to the bank and collecting interest after the designated time of loaning stretches out. This, so far, is a low-risk investment that can be carried out by any category of persons approved by ethics and law to do so, an advisable one at large.

4.      Bonds.

What are bonds exactly?

In the most literal sense, bonds are contracts delivered to entities by either a local, state, government, or private establishment detailing a funnel for retuned funds. It is generally lending out money with stipulated obligations for the borrower to adhere to while returning the fund.

It works in a fair weathered way, when an individual lends out money to a borrower, the bond matures; till the stipulated contract, possibly a detailed time expires, and in return, the borrower pays back with interest.

5.       Exchange-traded funds

ETFs are assemblages of reserves that track market indexes. They are purchased and sold in stock markets. Irrespective of how promising and highly recommendable this owing to the diversity their prices are always erratic as it fluctuates from time to time. The endgame to this is that you can select an EFT that tracks an index with range and ward yours off for gain by selling it.

6.      Stocks

Otherwise known as shares and equity, stocks are like ownership, when you purchase a stock you are allotting to yourself a prized percentage in a big branded publicly-traded company.

Investing in stocks becomes profitable when the price of the share heightens that way the sale of such stock would bring in profit, but contrary to this if the shares nosedive you’d record a decline in income

7.      Options

This vests in you the propensity to determine sales and purchase of assets of a certain price for a period, investing in options leaves you at a crossroads of call options and put, the former being for buying assets and the latter for selling

8.      Cryptocurrencies

Cryptocurrencies are digital currencies with no government possession, the exchange of them by way of buying and selling is what brings about profit and loss.

They are a plethora of cryptocurrencies and the risk to you depends on the type you buy and its ability to spike in the digital market.

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