Different Forms of Investment

644 WordsJan 26, 20183 Pages
Good morning everyone. I have been asked to find the best investments for my 18 year old friend who has just received 150 thousand dollars. There are many different ways of investing money. The five most common ways to invest are: Term deposits, Managed Funds, shares, property and superannuation. According to can star: A term deposit is a cash investment held at a financial institution for an agreed rate of interest over a fixed amount of time. If the investor wishes to take the money out of the account they will be charged a large fee. Another form of Investment is managed funds. According to colonial first state a managed fund is a professionally managed investment portfolio that individual investors can buy into, purchasing 'units' rather than shares. Shares are small parts of businesses sold on the stock market. The value can go up or down. Buying a property is a way of investing. As the prices of houses rise and fall so does the value of your house. The fifth way of investing is through Superannuation. Superannuation according to Investapedia are Funds deposited in a superannuation account growing typically without any tax implications until retirement or withdrawal These five ways of investing are not all suited to my friend. She is 18 and doesn’t have a proper job therefore she will not be able to get superannuation. As she only has 150 000 she will not have enough for a house. This leaves term deposits, shares and managed funds. These are the 3 best ways of
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