Types of Investments

How Investment or Financial Plans help you during Recession
Life is full of changes: some good, others bad; some planned and some unexpected. Developing a long-term financial plan to accommodate lifeís changes is essential to realize your personal/family goals.
In the current scenario of rising prices, analysts feel that there is a need to review your financial plans and investment portfolio as expenses may increase, creating the need for additional funds. Financial planning needs to be reviewed at two levels: spending and investments.

Spending :
Altering your spending and expenses is the first of the two pronged attack on the recession beast. If you were planning to buy a new car-donít .if you were planning on a tour to Europe-rethink. In short, curb unnecessary expenses. Tighten your belt for a while. You should plan expenses rather than make impulse purchases. Another great way to curb spending is to cut up the credit card & spend only cash. Loans should be taken only for essential; e.g., home loan (on a floating rate) is good but a loan to buy a new laptop is avoidable.

Investments :
In times of Recession, certain investment categories are better than others. For long-term equity and real estate, you can pick bargains during such periods. These investments are not for the feeble-hearted. You need to hold them for a period of three to five years. For shorter term, gold and commodities are the way to go.
When investing makes sure all your eggs are not in the same basket. Make your investment between different asset classes (Cash, bonds, property & equities), you can spread the risk and ensure that you benefits from favorable conditions in all markets.

There are many types of Investments:
Capital Investments :
Capital investment is defined as the expenditure that may be incurred by a business organization in order to purchase machineries and other fixed assets. This expenditure is normally beneficial as it lays the foundation for future investments of similar kind.
There are several uses of capital investment in the business circle like land, buildings or machines.
The basic idea behind any investment is to increase the assets of a particular business unit. Any form of capital investment helps you to increase both the rate and amount of your output.

Stock Investment :
The process of stock investment enables the stock traders or investors to trade in securities. You can operate individually or under the guidance of any investment management companies. Stock market investment is definitely not the right option if you are interested in making quick money. Investors and the traders have to pay some relevant taxes on income.
Shares are purchased and sold on the primary and secondary share markets. To invest in the share market, investors acquire a call option, which is the right time to buy a share, or a put option, which is the right time to sell a share

The price levels of a traded share are as follows:
Opening Price: This is the price at which the market opens. In other words, it is the price of the first transaction.
Closing Price: This is the price at the time of closing of the market or the price of the last trade.
Intra-Day High: This denotes the maximum price at which the share was traded in the day.
Intra-Day Low: This is the minimum price at which the share traded in the day.

Land Investment:
Land as investment is a long-term investment and as the price of land all over the world has taken an upswing, this form of investment can be termed as a safe bet. Big development companies, wealthy individuals and well-off farmers have involved themselves in land investment. You can use it in their best interest.
Investing in residential lands can be a profitable proposition. The availability of facilities such as schools, hospitals and road access are very important. It is true that investment in lands may not give you immediate profits, but it will give you profit in the long run.

Retiermennt Investing Planning:
Retirement investment planning ensures financial security in the post retirement period. Its benefits prove to be of great use for retirees. A considerable amount of money should be invested in retirement investment plans.
The first step to success in retirement investing is to develop the habit of saving early in life. Investment in short-term government bonds and government treasury bills are two examples for retirement investment. Bonds & T-bills do not lose their value and it can be safe investment option.
Insurance products also insure a fixed amount of money on an investment & it also gives you the benefits in the time of retirement.
People can also invest in mutual funds for retirement. Long-term financial goals can be well satisfied from mutual funds. The procedure of investment in mutual funds is quite simple and a mutual fund account should be opened first to carry out the entire process.

Gold Investment:
Gold investment is a long-term investment scheme involving low risks. People willing to invest in gold have a natural advantage because the demand for gold is much more than its actual supply. The price of gold is generally in a continual rise. You have to invest your money in Gold bars. However, you should not invest all yours funds in one kind of gold investments.

The benefits of Gold Investment are:
• Gold is a popular form of saving
• Gold can be transported easily
• Gold is the universal standard against which the value of any object can be assessed.
• Gold is a major requirement in the jewelry industryís

Business Investment
Business investment can give you a chance to invest in different kinds of businesses. Business investment can be a good option for you to manage your own portfolios. You may choose from different business investment plans depending on the market conditions and trends. Business investment typically means purchasing an asset in the form of stocks or bonds with a hope of getting returns and interest in the future. Companies also release their shares and bonds in the capital market in order to collect money for some financial purpose.
Real estate is one kind of business investment where money is used to purchase property. The sole purpose of the investment is to hold or lease the property for income. Real estate investment can be either commercial or residential property.
Business finance, on the other hand, refers to the business finance loan, which is one of the easiest ways to acquire funds for a company. Finance is the most important aspect for an entrepreneur both in order to start a new business and to expanding the existing business.

Equity Investments
Equity investment refers to the trading of stocks and bonds in the share market. It is also referred to as the acquisition of equity or ownership participation in the company.
An equity investment is typically an ownership investment, where the investor owns an asset of the company. In this kind of investment there is always a risk of the investor not earning a specific amount of money. An equity investor, in some cases, may assume some management control of the firm and may also share in future profits

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