Investment choices - Summary
May 8, 2007I don’t know about you but I’m starting to feel a little dizzy with all these investment options available. Until I’ve properly tackled all the options I’ve covered so far, I decided to not add any more to the (already) extensive list.
Of course I could go on talking about options, futures, exotic derivatives, commodities, currencies, real estate… but since I don’t see myself investing in any of those very soon, I won’t bother researching any details on them - yet.
In case you’ve missed a post of the “Investment Choices” series, here a brief overview:
- Shares: a very gentle introduction to what shares/stocks are
- ETFs: a first dive into the world of funds with exchange traded funds
- Index funds: passively-manged funds that aim to track the performance of a stock index. Commonly called “tracker funds” in the UK.
- Mutual funds: actively-managed funds where the fund manager picks shares in order to beat the stock market or achieve a certain objective. In the UK referred to as “investment trusts”.
- Bonds - part 1 and part 2: an excursion into debt securities with a gentle reminder that - assuming you’re young - this investment should by no means dominate your portfolio since the associated low risk won’t earn you decent (enough) returns.
- Bond funds: through the advantages of debt securities joined with the advantages of funds, bond funds are a good way of generating passive income.
- Unit trusts: UK investment jargon explained - part 1
- Investment trusts: UK investment jargon explained - part 2
- OEICs: UK investment jargon explained - part 3
Reading through the above list I feel re-confirmed that there are plenty of options to choose from when building a first portfolio. Let me know if you disagree or want to know more about anything else I haven’t covered so far!
