Types of investments

Types

It is needless to say that we need to invest in something in order to have a return. You can and you should diversify your investments, you can do that from several ways, since investing in education, a career, a business and a investment

Investments in capital markets can be divided in two basic categories:

-Fixed income

  • Fixed income investments normally have a smaller risk if any. Here you will enter in a investments that will pay you a fixed rate of interest or variable attached to a indicator such as inflation or the basic interest rate offered. Ex. Bonds, savings accounts

-Variable income

  • Variable income are investments where you do not know in advance what return you will have, this investments can carry a higher risk on the capital and are more unpredictable although they tend to give a bigger return on the assets. Ex: Equities, property

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