Some kind of investment you can do (First Part)

Investments no longer feels strange thing for the community. Starting from the bottom to the top, and even the types of investment were much in demand in the community. Starting from the most simple investments such as savings, family gathering, to various types of high investment such as bonds, stocks trading, futures trading and there are even some people who follow the investment that almost no sense as money game. Whatever type of choice, called the investment has been part of human life today. This is due to the existence of a taste to prepare for future needs in the old days. But the problem is, any type of investment is not necessarily the right thing to do by us or the people around us. Therefore, here are a few types of investments and their advantages and disadvantages of such investment. So you can do and choose the right type of investment in your own abilities.

Savings Bank.

• Profit
• Nominal value of the amount that you saved will not diminish in value (except for bank administration fee per month)
• Easily retrieved at any time
• Government savings guarantee
• Weakness
• Although safe, savings products only provide low interest
• Usually the interest earned from savings eroded bank administration fee

Deposit

• Profit
• Nominal amount deposited is guaranteed not to be reduced
• Benefit in the form of interest rate is better than money in the bank
• Weakness
• Lower liquidity than savings
• If taken prior to maturity deposit, deposits can incur a fine owners known as the penalty

Stock

• Profit
• Stocks can provide a high probability profit, above investment products such as savings and deposits
• Shareholders can profit from operations is called the dividend, based on the number of shares
• In addition, shareholders can get a "capital gain", ie profit from the difference between the purchase price and the selling price of shares
• Weakness
• The risk caused share prices are highly vulnerable to changes in the economy or the world market
• Did not get the dividend because the company had a deficit budget or because companies go bankrupt
• The termination transactions for a specific company to make the company's shareholders are not able to make trades

Mutual Funds

• Profit
• Small investors can diversify so as minimize the risk of loss of capital
• Facilitate investors who do not have the skills or gain
• Financiers helped fund manager so investors can save time
• Weakness
• Risk reduction units (proof of membership in a mutual fund in the form of collective investment contract) if the price of securities (stocks, bonds, and other securities) fell
• The investment manager may have difficulty providing the money if many investors to sell back simultaneously
• The risk of default if the insurance company mutual funds are not immediately pay compensation or pay less than the sum insured mutual funds.