Question

List at least four investment alternatives.

Answer 1

Savings Account Investment: This is a low risk investment that provides a low return. It is a good alternative for people averse to the risk of losing their investment.

Equity Investment: You can buy stocks individually through a brokerage account. If the stock appreciates, you will have benefited. On the contrary, if stocks depreciate in the financial market, you will have lost money.

Investment Funds: Funds are an option where many investors invest their capital to form a fund that will be managed by a financial market professional. This professional will be responsible for diversifying investments in various types of stocks which may appreciate or devalue.

Productive Investment: You can use your money to invest in the productive sector, for example by building a factory to produce manufactures that you will sell. This is a different type of investment as it requires a high starting capital value.

Answer 2

Four investment alternatives are hedge funds, futures, stocks, and bonds. If you are looking for more: mutual funds, annuities, and real estate are others.