Securities Vs Traditional Investments
Section 20 Module 6
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:
- 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.