Investment is not as simple as it looks like. Investing money is not an easy job.
Basically there are three type of investment:
Individually these investments further include sub investment in it. It’s very complicated decision for a person to decide in which type of investment he should invest. People who want to invest have to grasp some knowledge about investment types, stock market and other related areas.
A famous proverb-”little knowledge is more dangerous than no knowledge”.
So, for those who have little knowledge about stock market should not invest until he/she gain complete knowledge about it.
The period when your learning process is going on, you get to know which type of investor you are
-Conservative
-Moderate
-Aggressive, And also about the level of risk in this field- low or high risk.
Quality of conservative investor
- low risk tolerance power
- small investment
- short term investment
Usually they invest in saving account, money market account, mutual funds, US treasury bills and other certificates.
Quality of moderate investor
They often invest in
-Cash
-Bond
-Stock market [sometime]
They can bear low as well as high risk. They also have interest in investing real estate.
Quality of aggressive investor
They are ready to bear high risk on investment. They invest in
-Business ventures
-Stocks
-Real estate
The thought of the story is that you should never invest blindly you should have complete knowledge and command over the stock market and investment.
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