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Money For Nothing: How To Land The Best Deals On Your Insurances, Cards, Super, Tax And More
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Money For Nothing: How To Land The Best Deals On Your Insurances, Cards, Super, Tax And More

by Justine Davies
February 2012
Beginner
200 pages
4h 33m
English
Wrightbooks
Content preview from Money For Nothing: How To Land The Best Deals On Your Insurances, Cards, Super, Tax And More

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 ...

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ISBN: 9780730377641Purchase book