Types of investments
We can categorise investments into three main types. The type of investment that you choose should be based on your goals, risk tolerance, and time horizon.
1. Debt Backed Investment, also known as Defensive Assets
This refers to any debt shown on a balance sheet and includes:
- Fixed interest investments
2. Equity Investment, also known as Growth Assets
The goal of these types of investments is that the returns outweigh inflation and include:
- Private Equity
3. Alternative Investment
These are usually unrelated to the debt or equities markets and can include:
- Crypto Currencies
Each has its own pros and cons, so it’s important to do your research before making any decisions.