Question

What are the Different ways of financial investment ​

Answer 1

heya.....

Types of Financial Investment ⤵️

• Mutual Funds.
• Mutual Funds.Fixed Deposits.
• Mutual Funds.Fixed Deposits.Bonds.
• Mutual Funds.Fixed Deposits.Bonds.Stock.
• Mutual Funds.Fixed Deposits.Bonds.Stock.Equities.
• Mutual Funds.Fixed Deposits.Bonds.Stock.Equities.Real Estate (Residential/Commercial Property)
• Mutual Funds.Fixed Deposits.Bonds.Stock.Equities.Real Estate (Residential/Commercial Property)Gold /Silver.
• Mutual Funds.Fixed Deposits.Bonds.Stock.Equities.Real Estate (Residential/Commercial Property)Gold /Silver.Precious stones.

Answer 2

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Different ways of financial investment are :

Stocks

Stocks may be the most well-known and simple type of investment. When you buy stock, you’re buying an ownership share in a publicly traded company. Many of the biggest companies in the country — think General Motors, Apple and Facebook — are publicly traded, meaning you can buy stock in them.

Bonds

When you buy a bond, you’re essentially lending money to an entity. Generally, this is a business or a government entity. Companies issue corporate bonds, whereas local governments issue municipal bonds. The U.S. Treasury issues treasury bonds.

After the bond matures — that is, you’ve held it for a predetermined amount of time — you earn back the principal you spent on the bond, plus a determined rate of interest.

Mutual Funds

A mutual fund is a pool of many investors’ money that is invested broadly in a number of companies. Mutual funds can be actively managed or passively managed. An actively managed fund has a fund manager who picks companies and other instruments in which to put investors’ money. Fund managers try to beat the market by choosing investments that will increase in value. A passively managed fund simply tracks a major stock market index like the Dow Jones Industrial Average or the S&P 500. Some mutual funds invest only in stocks, others only in bonds and some in a mixture of the two.

Exchange-Traded Funds

Exchange-traded funds (ETFs) are similar to mutual funds in that they are a collection of investments that tracks a market index. Unlike mutual funds, which are purchased through a fund company, ETFs are bought and sold on the stock markets. Their price fluctuates throughout the trading day, whereas mutual funds’ value is simply the net value of your investments.

Certificates of Deposit

A certificate of deposit (CD) is a very low-risk investment. You give a bank a certain amount of money for a predetermined amount of time. When that time period is over, you get your principal back, plus a predetermined amount of interest. The longer the loan period, the higher your interest rate.

Retirement Plans

There are a number of types of retirement plans. Workplace retirement plans, sponsored by your employer, include 401(k) plans and 403(b) plans. If you don’t have access to a retirement plan, you could get an individual retirement plan (IRA), of either the traditional or Roth variety.