Financial Success Guide

Securities Vs Traditional Investments

Section 20 Module 6

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.