Ways to Invest Your Money

If you have some cash to invest there’s usually three main ways of investing your money – Cash, Bonds and Stocks. However things aren’t quite as straightforward as that as each of these three types has multiple types of investment opportunities that come under that main heading.

The stock markets can be intimidating for anyone with little knowledge of investing, however depending on the type of investor you intend to be – Aggressive, Moderate or Conservative and whether you intend to invest your capital in high or low risk investments will have an effect on the understanding you will need to gain before taking the plunge and starting your investment strategy.

Investors who are cautious with their cash known as conservative investors often invest in cash such as savings accounts that pay an interest rate, mutual funds, Certificates of deposit and US treasury bills. These tend to be a lower risk where your initial investment will grow slowly over time.

Moderate Investors whilst investing in bonds or cash tend to also dip into the stock market, foreign exchnages aka FOREX as well as investing in lower risk real estate. This can all be low or medium risk.

People who are willing to take higher risks with their investments are known as Aggressive Investors. They usually invest mainly in the stock market but may also diversify into higher risk real estate as well as business ventures. With the much higher risks comes the opportunity of bigger returns on investment (ROI).

Whilst books can be written on the subject in summary those are the main types of investment and investor. Try your hand at investing your money can be a lot of fun and can give you a decent return on your investment. However whatever investment strategy you decide to undertake, they all do carry risks. Do some research or seek professional advice first, understand what risks are involved and pay attentions to current relevant news and past trends that do tend to repeat themselves.

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