Tuesday, 4 May 2010

Different Class of Investment


There are several type of investment available to investor at the market. Every investor has their own unique niches when come to investment. Some like to play stocks, options and futures. Some like invest in property. Some like invest in business. Different class of investment, require different set of knowledge. Basically there are 3 main categories of investment class: Paper assets, Real Estate and Businesses. To best illustrate the differences of each investment class, I would like to suggest as follow:

  1. Paper assets (stocks, mutual fund, unit trust, options and futures): Investing in paper stocks is like go out and dating a girl. If you 2 won't get along, you two will shake hand, good night and never meet again.
  2. Real Estate: Investing in Real Estate is like getting married. First, probably you be looking for as much "girls" to date for. And come to the final choice, you be sitting down to have a big signing ceremony of engagement. Well, if the marriage don't get well, getting divorce will be a tedious job to do.
  3. Businesses: If investing in Real Estate is like getting married, then investing in business is like getting married with a kid. Your kid can be your biggest liability or assets depend on how you raise and teach. It is the most rewarding among the 3 classes yet the most difficult to deal with.
So choose the asset(s) class that suit you. Well, be fore warn, before getting into any investment, we should invest in ourself first - to be financially literate and smart!

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