what are various types of investments?

(i) Suitable investment options varies between investor to investor. Depending upon the need on can invest for capital protection of capital growth. In you age you can easily go for growth option like direct equity investment (shares), indirect equity like mutual funds (diversified equity funds) or may be real estate. But parallel to growth option you shall also invest to protect your capital. Investing in PPF, recurring deposits of bank, fixed deposits of banks, debt linked mutual funds are also other good investment options.

(ii) In order to start investing in stocks opening a demat account and online trading account is step-1

(iii) To understand the basics of investment you must read good books and also quality online content.

ok,

1. Paper investments, these include Stock/Share markets. Currency and Commodity markets

If you wanna start in these i recommend mutual funds, (who invest on your behalf and are experts).

2. Houses and Property. obviously a larger investment and if done right can make a good return.

3. Business. The hardest by far but can yield big returns.

The easiest to get into is paper. you can invest small and then continue building capital. read a bunch of books and decide how you want to invest. if your interested in trading, which is more intensive then investing. i can recommend "Trading for a living" "High Probability Trading" "Way of the turtle"

Dear Friend,

If ur a beginner,I suggest you to sign up for the Free Weekly Wealth Letter, the e-mail newsletter packed with money-making investment ideas will be delivered to your inbox every Tuesday morning.

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investment simply means putting your resources in an activity that increases your possession

there are long term investments and short term investments.for example you can deposit your money in a bank and that will be a short term depending on the type of bank account you go for but all in all its a short term investment that will bring you interest hence increasing your possessions.there is also long term investment where you put your money in a business venture and you let it mature (that is gaining profit at a certain period of time).you can start with a small business and later on you diversify your earnings.

hope i helped and you will select from the two simplest way of investment though there are a lot more.

Your Investment Options

SAVINGS BONDS

Savings bonds are issued by the United States Treasury and come

in two varieties. The Series EE and Series HH. EE bonds are available at most banks. The

minimum purchase is a $25 bond which will mature to pay $50 in eight to 12 years depending

on the interest rate. The interest rate on the bond is related to the market interest rate and

there is a penalty for cashing a bond in early. Series HH bonds are purchased from a

Federal Reserve Bank or through the Treasury at face value. They can be bought only by

trading in EE bonds or an old H bond. The HH bond matures in 10 years with interest paid

semi-annually.

Treasury Bonds are considered the safest bond investment. They are not insured but are

backed by the full faith and credit of the United States government. The US guarantees that

the investor will receive full principal amount upon maturity. There are no sales charges for

Treasury bonds and the interest they earn is exempt from state and local taxes and can be

deferred from federal income tax until the money is received.

GOVERNMENT SECURITIES

The United States government also issues debt securities to raise

funds. Other US securities (besides the savings bonds) include

Treasury Bills (Tbills) with up to one year maturities, Treasury

Notes with up to 10 year maturities, and other United States

Agency bonds. T-bills are sold to selected securities dealers by

the Treasury at auction. Investors can buy all three types, without

paying commission, directly from a Federal Reserve Bank, or from

a dealer.

OTHER BONDS

Municipal Bonds are issued by states, cities, or certain local government agencies. An

important feature of these bonds is that the interest which a bondholder receives is not

subject to federal income tax. Also the interest is exempt from state and local tax if the

bondholder lives in the jurisdiction of the issuer. Because of these tax advantages the interest

rate is usually lower than that paid on corporate bonds Municipal bonds are issued to fund

needed projects; such as bridges, schools, and new roads.

Corporate Bonds usually pay higher interest than government bonds but they are somewhat

riskier. If a corporation goes bankrupt, bondholders, as creditors, are paid their money before

stockholders. Corporate bonds are either secured or unsecured. A secured bond is backed

by specified assets or collateral, while an unsecured bond is backed only by the faith and

credit of the corporation. Companies offering bonds to the public must file a registration

statement with the SEC.

Why Bonds are resold on the market: Why would someone want to sell a $1,000 bond for

less than its full value? Suppose you buy a bond for $1,000 that pays 10% interest and

matures in ten years. Each year you would receive $100. After a few years, lets say interest

rates in general rise to $15. Your $1000 investment could be paying $150 a year. You want to

sell the bond to reinvest as much of the $1000 as you can, but who wants to pay $1000 for a

bond only paying $100 a year when they could pay $1,000 for a bond paying $150 a year. To

sell your bond you have to discount its price. On the other hand, if interest rates fall you

would be able to sell it for more than $1,000.

"Junk Bond" is a term for speculative, high-risk, high interest rate corporate or municipal

bonds. The default rate is much higher on junk bonds than on higher quality bonds.

STOCKS

As already discussed, when you buy stock, you are becoming an

owner of the company. If the company does well, the value of

your stock should go up over time. If the company does not do

well, the value of your investment will decrease. Many companies

distribute a portion of their profits to shareholders as dividends.

As owners, shareholders generally have the right to vote on

electing the board of directors and on certain other matters of

particular significance to the company.

Companies issue two types of stock, common and preferred.

Common stock is the basic form of ownership in a company.

People who hold common stock have a claim on the assets and

earnings of a firm after the claims of preferred stockholders and bondholders. The safety of

the principal of preferred stock is greater than that of common stock, however, preferred

stockholders cannot vote for the directors of the company.

There are five basic categories of stock:

"Income stocks" pay unusually large dividends that can be used as a means of

generating income without selling the stock. Most utility stocks are considered income

stocks

"Blue chip stocks" are issued by very solid and reliable companies with long histories of

consistent growth and stability. Blue chip stocks usually pay small but regular dividends

and maintain a fairly steady price. Examples of Blue chip stocks include IBM, Exxon,

Kodak, GE, and Sears.

"Growth stocks" are issued by young, entrepreneurial companies that are experiencing

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