Investments :: Various Types of Investments...

In this post let me try and analyse the various investment options that a person can consider and what is the usefulness of each of these. Over the next few posts I will try and examine what a portfolio is, and what is the best way to manage the portfolio.

The various investment options that are available are as follows:
1. Banks (Savings Accounts)
2. Banks and Governement Agencies (Fixed Deposits)
3. Mutual Funds
4. Stocks
5. Commodities and Metals
6. Real Estate

These are the few basic investment options that a person generally has. If you look at then I think we can safely say that the top most items on that list are very safe options and as we come down the risk increases. But at the same time or rather with the risk the profits can also be higher from the options in the lower portion of this list. We can easily classify ourseleves into one of the following two actegories.

a. No Risk No Gain
b. No Risk No Loss

Now you already know to which category you belong to. The first one is a person who is ready to take some risk in return of a potential gain and the second one are people who wish now to risk their money or probably take less risks. Throughout this blog my efforts will be dedicated to help you deduce an investment stratergy for yourself which is specific to the way you think. You can call it to be a middle path between the two situations.

Remember one thing for sure, the idea is to change the general outlook towards money. High income doesnot mean that you are rich or are going to become rich and vice versa. The only thing that can make you rich is your Financial Aptitude. In the next few posts, I would try to analyse each of these Investment tools. We would discuss their pros and cons and then move forward. Another important thing while considering to invest is to save tax. We will throw some light on that as well...

So bookmark this page and keep watching this space....