Financing Options

The need to invest is important. That does not mean every kind is apt for all. As wages are different so is the risk resistance of people.

 It is important to understand the ways the different investment class work as they may influence returns. 

 Most people are conversant with talks on the import of investment but are in the dark as to the risks involved.

 Many find out when their losses increase and by then it would be late to retreat. This article is well-thought input on the knowledge of investment classes.

They are in four major groups

  1. Cash
  3. Fixed interest
  4. Properties

 They all have different risk to reward advantage. This should be the first thing to consider.  Another is the timeframe for enjoying the income of each. For instance, shares give good yield within the short term.

 This timeframe may be long for some. Even a thirty-day venture may suffer some loss.  Earnings can change dramatically from one day to the next.

 Longer timeframes draw higher profits.   With the knowledge that none of them is stable, anyone can delve into this.


Low risk/ low income
High risk/high income
Low risk/ low income

They are defensive assets. They focus on making income and they include:

  1. Cash
  2. Fixed interest


Cash includes hard currencies and liquid investments that can produce results in thirty days or more. The beauty here is that it has a small risk. It is also worthy to note that this can be recovered at any time.

 Instead of using money, it is better to engage in short-term security. The interest it comes with will be useful.  They include bank bills and the like.

Fixed interest

Fixed interest’s returns come as standard payment for a fixed timeframe. They operate the same way as loans hence the fixed payments.

 Fixed interests come as bonds, finances, plus hybrid security. Their maximum profit period is three years and one is the least to benefit from it.

High risk/high income

These are the converse of low risk/ low income. As they draw greater risks so is their income high. Their other name is growth assets as their growth increases capital value and income.

Growth assets also fall within two classifications:

  1. Properties


Different properties come with their own values. Real Estates are a huge hit for Investors in many cities of the world.

If you own a couple of real estate holdings, it provides provide a gateway to stable cash flows and capital growth.


This can be company shares. It brings an increase either in share value and payments or a loss.

 This unstable nature of the market is accountable for this.   It is better to invest in different equity or Debt selections to avoid losing much when one or more dive.  Surf for those that are weak now and invest.

 The fall in the share value of any equity now does not mean it will remain so. They need five to seven years to reach the expected potential.


The best thing is to diversify. Folks used to the classes can find their way, a newbie should do them in bits.

The diversified investment will make sure income keeps coming as all the chosen options cannot crash at once.



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