For one to summariese different asset classes there are basically four types of asset classes
- Real Estate
- Gold & Silver
- Bonds & Fixed deposits
Each Class of asset has its own unique characteristics for investment which provide different returns on investments and also capital allocated to different asset class.
Real estate requires large amounts of money for investments and small investments are limited.This investments are suitable for conservative investors or defensive investors who do not expect high returns from investments as RENTALS as PERCENTAGE OF INVESTMENT IS LOW & APPRECIATION SCOPE IS LIMITED UNLESS AND UNTILL ONE CAN FIND GOOD PROPERTY AT BARGAIN PRICE.In past many investors invested large wealth because of faster appreciation but now HNI & rich people prefer less due to low return or nil return.
GOLD & SILVER
GOLD & SILVER needs no introduction as it is most common class of investments in India . Returns are moderate and risk is low. Do no provide high return .
BONDS & FIXED DEPOSITS
Bonds & Fixed deposits are easy and safest to invest. FDs do not provide high returns in contrast if Bonds selected properly can give higher the average return. Do not provide high return.
Equity as an class is very exciting class of investment.This class has made MILLIONS OF PEOPLE MILLIONAIRE. The key advantage is that it gives opportunity to participate in various business. RIDING THE BUSINESS GROWTH IS THE BIGGEST ADVANTAGE.
One must make a note that investing in equities require a proper due diligence as it carries high degree of risk and one should understand the business of company its dynamics ,its functions and various variables associated with it.
It rewards to those who are PATIENT & INVEST WITH CONVICTION AND INVEST WITH PROPER DUE DILLIGENGE .