Investing means putting money with some expectations in return whether it be buying an asset, engaging in a certain business venture, or building something. The expectations include receiving some kind of income or an appreciation of the investment after some time. In savings, money is normally kept in low risk accounts, that is why it is defined as putting money aside. In most cases, investing is faced with higher risks but it is rewarding in that there is a greater chance of returns.
Equities: Refers to the ownership in a company in which the investor buy shares with hopes of receiving dividends and also enjoying capital appreciation of the company.
Debts: Is defined as issuance of bonds where an investor lends money to a corporation or country and is paid interest for a certain period and paid the principal at the end of the maturity.
Property: This involves investing in land and buildings either by directly leasing and managing the investments or by buying shares in a property management company – REITs. Such investments may result in rent collection and rise in the value of the land buildings bought.
Collective/ETF: Similar funds allow you to gather your resources and invest them through a specific strategy in stocks, bonds or other securities.
Real Assets: Older tangible assets such as property, stocks or shares, commodities such as gold, crude oil or maize that can be bought and sold in financial markets.
Digital Assets: Inclusion of innovative cryptocurrencies alongside pipelines such as bitcoin, growing as an investment option.
It is crucial to invest for purposes of wealth accumulation over time and for achieving certain financial objectives such as retirement, buying a house and schooling. It is also true that risks are involved (since the value of investments can go up and down) but there is a great possibility of investing profitably over a long period of time with growth being higher than inflation as a way of ensuring the individuals’ financial stability. What one considers the best way of investing will vary according to one’s objectives, appetite for risk and the period within which he or she will want to access his/her money.
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