A bank CD is a very safe investment. These CD is normally FDIC insured up to $100,000, so there truly is minimal risk. The only downside is that you cannot withdraw that money in the CD for a specific amount of time or else you'll receive a penalty. Bank CDs generally only pay up to 5% interest.
Bonds
A bond is could essentially be defined as a loan you make to a company or a government for its use to be repaid to you for an greed interest over a period of time. Bonds have varying degrees of risk, from essentially risk-free treasuries to junk bonds. The higher the risk of the bond, the higher the return will generally be. Hence, the lower the risk, the lower the returns expected. Just as the saying, no risk no reward.
Stocks and shares
Stocks and shares are investments in companies as a co- owner . Subconsciously, A stock or Shareholder becomes a part of the ownership of a company after purchasing its shares. Depending on the type of the company, the level of risk of the investment can be high or low and thus also is the reward. Foe example, buying stock in Unilever is a lot less risky than a new Business that just started. In general, the stock market returns on average about 9% per Annum, Although, the real return of any given stock will vary from another and cannot be forecast with 100% accuracy.
Mutual Funds
A mutual fund traditionally invests in several stocks of different companies, so it's a guaranteed way to diversify ones portfolio and generate multiple streams of income by not putting ones eggs in one basket. Business wise, the mutual fund generally charges a fee, which is normally negligible as little as about 1% of your investment per annum.
Real Estate
investing in Real estate means buying Land or Landed property with the view of making future gains or immediate gains. Selling outrightly alanded property gives you an assurance of immedioate return while a letting or leasing arrangement gives aresidual income receivable over time. The most common Real Estate investment most people normally make is when you buy your personal home. The value or worth of your real estate investment could either decrease or increase depending on the housing market in your country or locality.
Author: http://best-secure-investment.blogspot.com/
