How does an investment fund work?
Investment Funds are privately pooled investments that collect money from sophisticated private investors. IFs invest the money pooled from private investors according to the investment policy. They invest the money in start-ups, private equities, real estate, social venture capital funds etc. It can be established as a company, trust, limited liability partnership or a corporate body.
What are the 4 types of investments?
1- Growth investment as they can help grow the value of your original investment over the medium to long term.
2- Cash investments include everyday bank accounts, high interest savings accounts and term deposits.
3-Property investment is considered a riskier type of investment as it can also carry the risk of losses. However, like shares, property can also fall in value and carry the risk of losing value.
4-Fixed interest investments are considered a defensive investment, because they carry lower potential returns than shares.
What is the best fund to invest in?
Growth investment funds can be a good investment for capital appreciation. However, sales charges can take a toll on your return in the short run. There are several major alternatives to investing in mutual funds, including exchange-traded funds (ETFs) considering its low charges, Equity funds can be good for long term investment with minimum of 4 years while Debt funds might be more ideal for short term investment
What should a beginner invest in?
Retirement investment plan is a good choice for beginners as this provides guaranteed return of investment. Beginners also can seek the assistance of electronic advisors recently developed to perform the investment on behalf of the investors and helping the doing the right choice and this is against low fees, Index funds is a good choice for beginners due to the low risk and minimal investment requirements. Finally ETFs as it is much easier than stocks and with low fees, some ETFs are eve commission free
What are four types of investments you should avoid?
1- High fee funds, as many mutual funds are charged relatively high compared to other investments
2- Stocks specially for beginners who do not have enough experience to decide which stocks to buy, even for experts it is a high risk investment
3- Foreign Bonds being one of the highest risk investment with high possibility of losing the money
4- Futures & Options as it is totally based on predictions which makes it very confusing and complicated