The types of investments include:
- Stocks.
- Bonds.
- Mutual Funds and ETFs.
<h3>What is an investment?</h3>
It should be noted that an investment is any mechanism that is used for generating future income. It includes the purchase of bonds, stocks, or real estate property, etc.
It should be noted that a rising inflation erodes the purchasing power of a bond's future coupon income, and thereby reducing the present value of its future fixed cash flows.
On the other hand, the accelerating inflation is more detrimental to longer-term bonds, given the cumulative impact of lower purchasing power for the cash flows received far in the future.
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