What is the investment products? Previously the article mention that the investment is more on planning, planning to make you richer, make money works for you to enable Financial Freedom.
In this post, the discussion will be on how to basically knowing the investment products. Firstly, what is the investment products? Generally,they can be defined as the method, way that can help you to achieve success investment.
The investment products listed here are taken from one of Robert T. Kiyosaki famous book; Guide To Investing. In one of the chapter found inside the book, he listed some of differential investments which are:
- Stocks
- Bonds
- Mutual Fund
- Real Estate
- Insurance
- Commodities
- Savings
- Collectibles
- Hedge Funds
To make it clearer, he then divided each of the group into more subdivision.
The subdivision of stocks are:
- Common Stocks
- Preferred Stocks
- Stocks With Warrants
- Small Cap Stocks
- Blue Chip Stocks
- Convertible Stocks
- Technical Stocks
- Industrial Stock
As an extra info, one of the successful investor in the world, Warren Buffet has turned into billionaire by investing in the Blue Chip Stock Subdivision
The subdivision of Real Estates are:
- Single Family
- Commercial Office
- Commercial Retails
- Multi-Family
- Warehouse
- Industrial
- Raw Land
- Raw Land on the curb
Investing in Real Estates has been known for making people financial free by collecting the wealth via their passive income
The subdivision of mutual funds are:
- Index Fund
- Aggressive Fund
- Sector Fund
- Income Fund
- Closed End Fund
- Balanced Fund
- Municipal Funds
- Country Fund
Investing in mutual funds are much more reliable to those passive investor which are afraid of high risk. Approximately the mutual fund annual return are around 5% - 20%, depends on what subdivision you invested
The subdivision of Insurance are:
- Whole, Term, Variable Life
- Universal, Variable Universal
- Blended (whole and term in one policy)
- First, Second or last to die
- Used For Funding Buy-Sell Agreement
- Used For Executives Bonus and Deferred Compensation
- Used For Funding Estate taxes
- Used For Non Retirement Qualified benefits
The subdivision of bonds are:
- Government Bonds
- Company Bonds
- Islamic Bonds (Sukuk)
The average return of investment (ROI) of bonds are around 5% - 10% annually.
As can be founded here, there are so many investment products. People normally did not noticed most of the information listed above. They are usually only have information on the surfaces and lacks of the inside information. That's why to gain more, ones have to pain more; putting more effort to gain more knowledge.
By sharing all those info, perhaps people will get more views and knowledge.
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