Choose the right kind of investment for you

Investments can seem intimidating, but there are multiple options that can make it a lot easier.

09:36 31 October 2013

If you have been thinking of investing, there are quite a few different options to try. You may choose one, or a combination of many different avenues. Here are a few options to help get you started with your investments.

• Bonds—these are not as common as they once were due to low rates of return, but they can still result in helpful monetary gains. A bond is typically money that a government or company promises to repay after a certain amount of time with either a fixed amount of interest or a variable one based upon market trends.

 

• Shares—shares are one of the most popular forms of investments. Some employers provide ways for their employees to invest their money through shares. The companies may use a pooled group of resources in order to provide the best benefits possible to each individual employee/investor.

 

• Investment trusts—investment trusts and active funds may allow you to spread the risk for your investments over a collection of investment sources. If you plan to have a manager for your investments, it is wise to research the performance of any manager or firm that you are considering. Remember to account for fees, incentives for the manager, and anything else which could impact the end results.

 

• Unit trusts would be better for shorter term investment periods such as three to five years. If you plan to invest for a longer period of time, it might be more lucrative to use an investment trust.

 

• Property—one of the most stable ways to earn a return on a longer-term investment, or even income, is to choose property. If you invest in homes, you would be able to use it for a source of extra income or could liquidate it for an increase in your cash flow.