Investment requires financial resources, and developing a versatile portfolio. Portfolios must be adjusted periodically according to changes in the market, while maintaining a long term focus or target.
The investment scene is very dynamic and therefore ever-evolving. Investors who take their time to understand the basics and the different categories of assets, usually make substantial gain on the long run.
The first step is identifying the different types of investment and the degree of risk involved.
- It’s difficult for beginners to choose ehich type of the myriad of possible assets to add to their portfolio.
- The investment risk ladder identifies assets based on their respective risk. Currency exchange is considered the most secure and stable option in a volatile market.
- ETFs is the best option for new investors.
Main Investment Categories:
- Cash Deposits
Cash deposits via a bank are the simplest and easiest investment asset. Investors do not have the ability to learn the exact interest on their deposit, but the main capital is guaranteed.
- 2- Bonds
A financial instrument with a steady income and low risk. A bond is a debt instrument used by governments and companies to fund private projects. Bonds provide an adequate revenue with a very small risk.
Bond prices are set predominantly using interest rates, and are usually traded during quantitative easing, or when the central banks raise interest rates.
- 3- Investment Funds
A type of investment that requires more than one investor to pool their resources together to buy financial instruments.
Investment funds are managed by a portfolio manager who diversifies investment in stocks, bonds, and other financial instruments.
Anyone can invest in these funds.
Investment funds are valued at the end of each trading day, or week.
- 4- Exchange-Traded Funds (ETF)
Exchange-Traded Funds (ETF) were first offered mid-1990s. They are traded around the clock and are known to reflect the purchasing behavior, meaning that the value of a fund changes during trading.
- Real Estate
Investors can obtain real estate assets by direct purchase or through housing funds.
Real estate investment is similar to a common fund, in joining a number of investing purchasing real estate together.
- 6- Commodities
Tangible products, e.g. gold, silver, crude oil, and some agricultural products.
How to invest in a simple manner:
Many experienced investors usually diversify their portfolios using assets that have been identified above.
Investors are advised to start with simple investments then expand their portfolios gradually.
Investing in FX
A good tool for new investors due to its distinctive nature. Foreign exchange is very simple, and you can learn how to do it easily through our website (accuindex.com), or our company academy.
We are available to all our clients 24 hours, 5 days a week.