provide descriptions of the following investments options and elaborate on the risk factor of each...Unit trust,shares,fixed property,debentures
Answers
Unit trust- Unit trusts are the set of resources of thousands of investors who have entrusted their money to a fund management company. The risk here is there is no guarantee of any income distribution, returns or capital appreciation.
Shares- one of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits. The primary risk of share is loss of capital.
Fixed property- A property or asset that is not consumed or sold during the normal course of business, such as land, buildings, equipment, machinery, vehicles, leasehold improvements, and other such items. Safety of the asset is the risk here.
Debentures- a long-term security yielding a fixed rate of interest, issued by a company and secured against assets. Interest rate risk and liquidity risks are available in debentures.