Presently, there are three various kinds of investments. That in have stocks, bonds, and cash. Seems simple, right? But its not, it more and much more difficult from the start. These three investments has further so many types which makes you confuse.
There are lots of things to understand about these various types of investments. The stock market become more difficult for those who understand little or almost none about investing. Fortunately, the quanity of information that you require to understand has a simple relation to the investing type you are. There are basically 3 vaious types of investments: conservative, moderate, and aggressive. All these three investments types have different risk tolerence.
Conservative investors basically try to invest in carts. It means that they provide their money in interest bearing working accounts, money market accounts, mutual funds, US Treasury bills, and Certificates of Deposit. These are very safe investments that grow over a long period of time. These are also low risk investments.
Moderate investors often invest in cash and bonds, and may dabble in the stock market. Moderate investing may be low or moderate risks. Moderate investors often also invest in real estate, providing that it is low risk real estate.