Investing
Investing, broadly, is putting money to work for a period of time in some sort of project or undertaking in order to generate a positive return.
Investing is the act of allocating resources, usually capital, with the expectation of generating an income, profit, or gain over the medium to long term.
One can invest in many types of endeavours (either directly or indirectly) such as using money to start a business, or in assets such as purchasing property in hopes of generating rental income and/or reselling it later at a higher price.
Risk and return go hand-in-hand when investing; low risk generally means low expected returns, while higher returns are usually accompanied by higher risk. At the low-risk end of the spectrum are basic investments such as cash or fixed term deposits. Bonds or fixed-income instruments are higher up on the risk scale, while equities and units trusts known as collectives are regarded as higher risk. Commodities and derivatives are generally considered to be among the riskiest investments. Of course, one can also invest in something practical, such as land or property, or items that require specific areas of expertise such as such as fine art and antiques.
We may not be able to provide advice on investing in Picasso or classic Ferrari but if you would like to find out more on other areas of investment then please do get in touch.
