Investments like fruits have different kinds and forms. Over here i will share with u all some of investment tools available.
1) Equities Market ( also known as the Stock market )
The most popular investment is the equities market, namely the stock market. Buying shares is actually owning a small fraction of the company which u purchase the shares in. Should the company makes profit, u are entitled to dividends if the board declares any. However, there are fund managers and investors and spectulators around, therefore the shares that u purchase will experience changes in pricing, with the changing demand and supply of the investors.
In simple terms, one earn $$ when u buy the company at a low price and sell when it rises.
2) Unit Trust
Unit trust are a pool of resources namely cash, being managed by professional fund managers. They namely invest in equities market, bonds, teasury bills and other investment tools available. Investor need to note that there is a management fee usually about 1%, and there is a bid ask gap of 5% and lastly a sales charge of 3%. So by investing in unit trust, investor will lose 9% of his capital, thats y unit trusts are targetted at long term investors.
3) Bonds
Bonds are funds raise by managers and loan to corporates, who in turn will pay interest to the bond holders. Usually this form of investment will mature in 3-5 yrs times depending on the terms of the bonds. The interest will usually be 1-2% higher than fixed deposit rate., however, this is a highly illiquid form of investment.
4) Fixed Deposits
U place cash with banks and financial companies, then they will pay u interest rate. Investor need to know that usually this form of investment is unlikely to offset inflation.
5) Property Investment
This is a capital intensive investment. Investment will ride the industry waves in order to profit from it. Investors need to understand that property market in singapore move in a cyclic trend.
6) Land Banking
This is a newer investment tool available in Singapore. Investors will purphase plots of land in countries such as UK, Canada and US. Then once town plans etc paper works are put up and approved, the land prices will increase, and this is where investor will profit.
1) Equities Market ( also known as the Stock market )
The most popular investment is the equities market, namely the stock market. Buying shares is actually owning a small fraction of the company which u purchase the shares in. Should the company makes profit, u are entitled to dividends if the board declares any. However, there are fund managers and investors and spectulators around, therefore the shares that u purchase will experience changes in pricing, with the changing demand and supply of the investors.
In simple terms, one earn $$ when u buy the company at a low price and sell when it rises.
2) Unit Trust
Unit trust are a pool of resources namely cash, being managed by professional fund managers. They namely invest in equities market, bonds, teasury bills and other investment tools available. Investor need to note that there is a management fee usually about 1%, and there is a bid ask gap of 5% and lastly a sales charge of 3%. So by investing in unit trust, investor will lose 9% of his capital, thats y unit trusts are targetted at long term investors.
3) Bonds
Bonds are funds raise by managers and loan to corporates, who in turn will pay interest to the bond holders. Usually this form of investment will mature in 3-5 yrs times depending on the terms of the bonds. The interest will usually be 1-2% higher than fixed deposit rate., however, this is a highly illiquid form of investment.
4) Fixed Deposits
U place cash with banks and financial companies, then they will pay u interest rate. Investor need to know that usually this form of investment is unlikely to offset inflation.
5) Property Investment
This is a capital intensive investment. Investment will ride the industry waves in order to profit from it. Investors need to understand that property market in singapore move in a cyclic trend.
6) Land Banking
This is a newer investment tool available in Singapore. Investors will purphase plots of land in countries such as UK, Canada and US. Then once town plans etc paper works are put up and approved, the land prices will increase, and this is where investor will profit.
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