Money For Nothing: How To Land The Best Deals On Your Insurances, Cards, Super, Tax And More
by Justine Davies
Appendix D
Asset classes
While there are hundreds of different types of investment, they all relate back to four main asset classes.
Cash
The simplest example of a cash investment is a bank account on which you earn interest. In this situation, you are lending money to an institution in return for interest payments. Generally, a cash investment has a short investment timetable and provides a stable, low-risk income.
Bonds
When you invest in bonds, you are lending to either the government or a corporation, usually for a set period of time at a set interest rate. Often, the higher the interest rate, the higher the potential risk.
Bonds vary from very safe to quite risky and most bonds do have a credit rating. The value of a bond will rise or ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access