Securities Vs Traditional Investments

1. Securities

The main types of securities are:

• Cash in the bank.
• Fixed Deposits
• Government and Corporate Bonds
• Structured Notes

Characteristics of Securities

• Securities are mostly capital and / or returns guaranteed investments
• If the issuer of the security goes bankrupt, you can lose some or all of your money.
• The issuer of the security can do whatever they like with your money without informing you of the same.
• Money is not invested in the asset directly.

2. Traditional Investments

The main types of traditional investments are:

• Stocks
• Index Funds / ETFs / Mutual Funds
• Commodities such as Gold, Silver, etc…
• Real Estate

Characteristics of Traditional Investments

• Traditional investments are generally neither capital, nor returns guaranteed.
• Value of the investment fluctuates based on various market-linked factors.
• Money is invested in the asset directly.