There are various Investment Vehicles. Some of them are as follows :
1. Bonds
2. Stocks
3. Mutual Funds
4. Options
5. Futures
6. Forex
7. Real Estate
8. Gold
9. Commodities and so on….
I will briefly describe some of the Investment Vehicles in the future articles. I am particularly interested in the following : Stocks, Options, Futures and Real Estate.
What is meant by Bonds?
Bonds are the safest and the lowest yielding investment vehicle that one can get. Bonds are issued by the Government and certain companies. When you buy the bond, it means you are lending your money to these people and they in turn assure you to pay back your money with interest. It is risk free if the government is stable or the company is doing pretty well such as Power Corporation. The safety and stability, however, come at a cost. Because there is little risk, there is little potential return. As a result, the rate of return on bonds is generally lower than other securities.
I have described about Stocks and Mutual funds in my previous articles.
Now for Options and Futures, I will write about them in detail in the future articles. Since it is totally a vast topic and I need to explain much in that. It is really very interesting and I would love to explain you that in detail.
I think Gold and real estate everyone knows about it.
Commodities and Forex is of my interest as well. I have not played much with those so I can hardly tell you what it is. I too am learning about them. Once I get to know I shall update you.
Keep Visiting and Happy Investing.
Engineer's Finance 