Investments

What are investments?

When you hear the word “investing” what comes to mind? Most people associate investing with making money through stocks or real estate, which are 2 well known investments. Well, investing is when people put money towards assets or projects for a period of time so the money can grow and give them a return or a profit. Regardless of whether you are a cautious or adventurous investor, each approach has its pros and cons, and there are many investment options suited for you.  

Before exploring these, however, it is important to understand what investors ( people who invest) seek when investing: high returns, low risk, and high liquidity. High returns means to have significant profits, while low risk and high liquidity refer to how easily an investment can be converted to cash without losing profit. Ideally, investors want investments that have all 3 categories but no investment can fully meet all 3 areas. Instead, each investment has a blend of the 3 categories.