Stocks
Fixed Income
Cash
Real Estate
Commodities
Alternative Investing
Investing in the stocks market
Stocks can provide the potential for long-term growth and higher returns compared to other asset classes. It entails being exposed to higher volatility and potential short-term losses.
- Based on the time an investor wants to dedicate to analysing stocks, they can get exposure through active investment or passive investment
- Investors can choose to invest in large-cap companies, which are well established and offer more stability or small-cap companies, which have higher growth potential & risk
- Based on the strategy, a portfolio can be value or growth-oriented. Value investing seeks undervalued companies for potential stock price appreciation, while growth focuses on high growth potential companies
- A focus on developed countries tends to offer stability while investing in developing countries provides higher growth potential but also more risk.
How to invest in Fixed Income?
Fixed-income investments are financial products that pay a fixed rate of return. They offer a much more predictable return than stocks
The percentage of interest that they pay will rely on factors such as interest rates, credit risk, inflation risk, and duration.
Some of the most common ways to invest in fixed income are Government and Corporate bonds, Certificates of Deposits, Money Market funds, Treasure Securities, Municipal bonds and annuities
Ways to invest in Real Estate
Real estate investment can offer a steady income stream through rent, the potential appreciation in value, diversification of assets, tangible assets, and tax benefits. Some of the most common ways to gain exposure to Real Estate
- Real estate investment trusts (REITs): buy shares in a REIT, which pools funds from multiple investors to purchase properties and generate income from rent.
- Real estate mutual funds or exchange-traded funds (ETFs): invest in a fund that holds a diversified portfolio of real estate assets.
- Direct ownership: purchase a property with the intention of earning rental income or selling it for a profit later.
What does Alternative Investing mean?
In this category, we find Hedge Funds, Private Equity Funds, Ventura Capital investments, Art and Antiques,… we exclude from this category commodities and Real Estate as we allocate an entire section to talk about them.
The main characteristic of this type of investment is diversification as they are not usually correlated to the stock market. Also, they tend to be very illiquid. Private equity funds tend to be closed funds and last around 10 years. Venture Capital refers to investing in companies at a very early stage. This type of investment is extremely risky, but the returns can be astonishing. –> (Click image)
Why invest in commodities?
Raw materials such as precious metals, energy, and agricultural products, can provide the potential for returns based on changes in supply and demand and diversification and hedging against inflation.
There are several ways to invest in commodities, including physical ownership, commodity ETFs and mutual funds, futures contracts, commodity stocks, and options.
We will publish a detailed article for each asset class, explaining from an investment perspective when they are important and ways to get exposure to them
