Investing is one of the best ways to grow your wealth while you’re in the public sector as most times you would not have enough time and energy to constantly monitor due to your hectic schedule and job requirements. There are many different ways to make your money work for you, but how? Each instrument comes with its own level of volatility and rewards. Some are more complex and require a bit more understanding of the instrument and constant monitoring compared to others. The notion that “higher risks net you higher rewards” is not necessarily true. It all depends on your understanding of the different kinds of financial instruments and how you manage them.
A few common types of investments :
Stocks/Shares/Equity
Basically you’re buying a small share in the ownership of a company. Stocks usually have to be monitored constantly.
Commodities
Investments in natural resources such as gold and oil(usually through futures contracts)
Bonds
Investor lends money to a corporation and they pay you back at fixed interest rates over a period of time. Most investment portfolios consist of these.
Futures
Trading commodities or financial instruments at a predetermined price at a specific date in the future(hence the name)
Funds
A group of stocks or bonds. Funds are professionally managed to achieve the best returns for investments
These are just a few of the many different types of instruments that you can grow your wealth in. Some people prefer the thrill of the huge volatility of stocks and shares, some people would rather have something slower yet safer such as bonds and funds. But ultimately it is best to fully understand or consult someone with does with regards to the kinds of investment that you are interested in. Once you understand how they work, it will much easier to categorise them and find the ones that suit you the most.
A few common types of investments :
Stocks/Shares/Equity
Basically you’re buying a small share in the ownership of a company. Stocks usually have to be monitored constantly.
Commodities
Investments in natural resources such as gold and oil(usually through futures contracts)
Bonds
Investor lends money to a corporation and they pay you back at fixed interest rates over a period of time. Most investment portfolios consist of these.
Futures
Trading commodities or financial instruments at a predetermined price at a specific date in the future(hence the name)
Funds
A group of stocks or bonds. Funds are professionally managed to achieve the best returns for investments
These are just a few of the many different types of instruments that you can grow your wealth in. Some people prefer the thrill of the huge volatility of stocks and shares, some people would rather have something slower yet safer such as bonds and funds. But ultimately it is best to fully understand or consult someone with does with regards to the kinds of investment that you are interested in. Once you understand how they work, it will much easier to categorise them and find the ones that suit you the most.