Best Types of Investment Vehicles

When you desire to increase your financial worth, you can trade your time for an income, invest money you currently have, or both.

What are the Best Types of Investment Vehicles?

Investment vehicles allow you to place your money into assets that aim to accomplish their stated investment objective. You have a wide variety of options available to you for meeting these needs.

What are the Best Types of Investment Vehicles?

1. Bonds

Bonds act as a specific type of debt. They offer a lower return than many of the other investment vehicles mentioned in this article, but they represent one of the safest investments you can make. Of course, this depends on the quality of the company or institution issuing the bonds.

What are the Best Types of Investment Vehicles?

2. Individual Stocks

Stocks can bring high gains when carefully selected and held for sufficient amounts of time.  However, if chosen poorly, they can also result in substantial losses.

What are the Best Types of Investment Vehicles?

3. Exchange-Traded Funds (ETFs)

Exchange-traded funds (ETFs) have gained a significant amount of popularity in recent years. These financial instruments hold groups of assets (usually stocks, but also bonds or other assets) by pooling money with other investors to purchase financial instruments, benchmarks or other investment strategies laid out in an ETF’s prospectus. 

What are the Best Types of Investment Vehicles?

4. Mutual Funds

Traditionally, mutual funds had high management fees because most employed an active management style, where investment managers chose stocks according to their research and not in accordance to some index or benchmark.  

What are the Best Types of Investment Vehicles?

5. Cryptocurrency

As many millennials found out at the end of 2017, cryptocurrency markets come jam-packed with volatility.  First with bitcoin, and now with “altcoins.” However, investing in cryptocurrency has lucrative potential and many investors think crypto represents the future. 

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