What Are The Different Types Of Investment Vehicles?

Investment vehicles can be low risk, such as CDs or bonds, or high risk such as options and futures.

Other investment vehicles include lending investments, such as bonds, CDs, and TIPS; cash equivalents; and pooled investments, such as pension plans and hedge funds.

What are the 4 types of investments?

There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.

  • Growth investments.
  • Shares.
  • Property.
  • Defensive investments.
  • Cash investments include everyday bank accounts, high interest savings accounts and term deposits.
  • Fixed interest.

What are the 5 types of investments?

Types of Investments

  1. Stocks. When you buy shares of a company’s stock, you own a piece of that company.
  2. Bonds.
  3. Investment Funds.
  4. Bank Products.
  5. Options.
  6. Annuities.
  7. Retirement.
  8. Saving for Education.

How many types of investments are there?

There are three types of investments: ownership, lending and cash equivalents.

What are four types of investments you should avoid?

Types of Investments New Investors Should Avoid

  • Mutual Funds With High Expense Ratios or Sales Loads.
  • Any Type of Derivative, Including Stock Options.
  • Any Individual Stock For Which You Cannot Answer Several Questions.
  • Complex Private Entities Designed to Minimize Taxes.
  • Junk Bonds and Foreign Bonds.