types of investment

• deposit is a financial term that means money held at a bank.
• deposit is a transaction involving a transfer of money to another party for safekeeping.
• fund is a supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of his shares.
• bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental)
• A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation.
• stocks

  These transactions have to conform to government regulations which are meant to protect investors from fraudulent practices.
• Property

  This is a tangible or hard asset investment that very appealing. Purchase of properties like real estate, building, and land to earn for the return of investment through rental income, and future sale of properties.
• current account

  1. an account at a bank against which checks can be drawn by the account depositor; a checking account.
• savings account is a bank account at a retail bank. Common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options, and the inability to be overdrawn.
• savings account can be defined as a deposit account held at a bank or financial institution, allowing customers to save money while earning interest.
• time deposit also referred to as a term deposit, is

  an interest-bearing bank account with a fixed term. It allows depositors to grow their money with higher interest rates compared to a regular savings account
• When the term is over, depositors can withdraw their money or it can be renewed and held for another term. Generally speaking, the longer the term the higher the interestrateofferedbythebank. time deposit
• Money market funds are invested in short-term fixed-income securities. Like government bonds, Treasury bills, commercial paper, and certificates of deposit.
• Money Market Funds are suitable for conservative investors who are looking for higher returns than regular savings and time deposits.
• Bond Funds

  This type of fund invests in a diversified portfolio of medium to long-term fixed- income instruments like government securities, corporate notes and bonds, and fixed-income funds.
• bond fund

  These funds are suitable for moderate risk-taking investors who are looking for higher returns.
• equity fund

  These are suitable for aggressive investors who want to maximize earnings for the long term and understand the risks of the stock market.
• Equity funds have different specialization such as growth stocks, value stocks, large-cap stocks, mid-cap stocks, small-cap stocks, or a combination of these stocks.
• Balanced Funds

  This is an investment in a mix of equities and fixed-income securities invested in a diversified portfolio – typically in a 40% equity 60% fixed income ratio.
• balance fund

  Aims to generate higher returns. This fund suitable for those investors who are in between

  conservative and aggressive looking for more profit despite risks.
• index fund

  This fund invested in a diversified portfolio of stocks in the PSEI. Index funds follow the index go up when the index goes up and goes down

  when the index goes down.
• Index funds are popular as they typically require a lower management fee compared to other funds. These funds are suitable for those

  aggressive investors.
• Specialty Funds

  These funds focus on a very small part of a market such as energy,

  telecommunications, healthcare, industrials, etc.
• When a company announces that they’d like to borrow money, they are said to issue bonds so they’re called issuers. Investors

  who acquire them are called debt-holders or creditors.
• A bond is a debt. It is issued as proof that a company or organization borrows a sum of money from an investor
• Government bonds or treasury securities. These bonds are issued by the Philippine government through the Bureau of the Treasury, and also known as treasury bonds.
• Government

  bonds issued by national governments are often considered low-risk investments since the issuing government backs them.
• To support government spending and obligations. Government bonds can pay periodic interest payments called coupon payments.
• Treasury bills are short-term, usually less than a year. Interest is not paid,

  instead, the bills are priced at a discount. Your income is derived from the difference between the discounted price you paid and the full amount that the government pays back, which is called “spread”.
• Fixed-Rate Treasury Notes (FXTN) pays semi-annual interest or as described during the offer.
• Retail Treasury Bonds (RTB) are longer than FXTNs. They usually carry quarterly interest payments.
• Republic of the Philippines (ROP) bonds are dollar-denominated debt

  instruments.
• Corporate Bonds

  A corporate bond is a type of debt security that is issued by a firm and sold to investors.
• While in buying a corporate bond is a debt obligation and doesn’t give you any ownership interest in the company. You will only receive the interest and principal on the bond,
• The stock market refers to the collection of markets and exchanges where regular

  activities of buying, selling, and issuance of shares of publicly-held companies take place.
• Common stock – It is security usually purchased for participation in the profits and control of ownership and management of the company.
• stock market are common stocks. Common stocks are also known as “ordinary shares.”
• Preferred stocks are another type of securities issued by corporations. Its name

  is derived from the preference given to the holders of this stock over holders of common stocks.
• Cumulative preferred stocks are special preferred stocks that accumulate

  unpaid dividends for future payment.
• Convertible preferred stocks are preferred stocks that are exchangeable into

  common stocks at the option of the holder under specified terms and conditions.