Securities Vs Traditional Investments

Securities Vs Traditional Investments

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.

About the Author Amit

Amit is an Independent Financial Advisor, based in Dubai since 1997. He is part of the prestigious ‘Million Dollar Round Table’ (MDRT), which is an elite club of the best financial advisors worldwide. He has authored the ‘6-Step Financial Success Guide’, and the book ‘Creating, Preserving, Distributing Wealth’. He helps business owners and professionals ‘Create A Second Income’ through investments.

follow me on: