Learn About Investing
Cash and property are pretty self-explanatory and anyone who owns a home will know that over time, the price of their property can go up. Bonds are essentially loans to a business or government. Investors invest their money and on top of receiving the money back when the bond matures, they also receive regular payments called coupons.
With shares on the other hand an investor is actually buying part of a company. Share prices can rise and fall dramatically over a short space of time and it’s this behaviour that drives world stock markets.
Other types of assets available are commodities such as gold and oil, and alternatives like art and fine wine. These types of assets can be quite specialised and may only suit certain types of investors.
Most assets can be bought directly or indirectly. For example, rather than buying shares in a company directly, you could invest in a fund that buys a selection of shares (and other assets) on your behalf.
Our research has helped us create a list of the top ten most frequent questions that people who are new to investment ask.