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There are a great many forms of investment. Broadly, they are classified into four groups: short-term deposits, bonds, property, shares. Within each asset category there are investments to suit different kinds of investment risk, duration, returns and liquidity. There are also various ways of investing. You can choose the ‘DIY’ pattern and invest directly in one or more asset classes.

Or, you can invest in a managed fund where financial specialists make a wide scope of investment for you.

1. Short-term deposits…

A) Bank savings accounts – A savings account is the simplest type of cash investment. Returns are lower in comparison with other investments, but returns are guaranteed by the bank. A part of the whole amount of money can be withdrawn whenever you wish (total liquidity). This makes these investments ideal for short-term savings goals, or as a place to keep your emergency fund.

B) Bank fixed term deposits – You put an amount in a bank for a specified term. In return, you get a higher interest than you could get from a savings account. If you withdraw your money, the interest will be lower.

2. BondsBonds are issued by the government or a firm -  You give them an amount for a certain period, and they promise to pay a fixed interest rate and pay you bank at maturity. Bonds lock your money away for a fixed period of time, but they can sometimes be traded.

3. Property – Investing in property can be profitable, providing it is properly managed. Property investments fall into direct and indirect.

A) Direct property investment decisions – If you decide on a direct property investment, you can control the everyday management of your property on your own, or hire a property management business to do it for you.

B) Indirect property investment – For an indirect property investment, you can invest in a private superannuation pattern or managed investment fund that invests some of your money in property. This kind of investment decisions makes it simpler for the average investor to benefit from different types of investment.

4. Stocks and shares – If you make an investment in stocks and shares of a public corporation listed in a stock exchange, you get the right to share the future income and value of the company. The return can come either in the form of dividends or capital gains. Surely, stocks and shares can also drop in value. Before deciding on a kind of investing scheme, consult your financial consultant.

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