Investment vehicles are financial assets that provide
investment avenues where funds are infused with the purpose of accumulating
profit and amassing wealth for tomorrow. They are basically channels that investors
use to gain future returns on present day pledges.
Popularly-known investment vehicles are stocks and bonds,
however, there are others. It is of great benefit to know those which could
provide you with higher chances of enjoying the potential rewards that come
with having an investment plan. This is not a professional outlook, just a
guide. We advise that you consult a professional financial planner, in areas of
doubt or need clarification.
When in need of a safety net, this is the road to ply.
Although it’s not often considered as an investment vehicle, neither does it
offer high interest rates, it is the most essential of all investment vehicles
as it builds your will to forgo present pleasures to make future gain. The
strength of your savings is as strong as the currency involved. If there is an
increase in value, your investment gains buying power but if the value drops,
it could lead to diminishing returns. With this investment vehicle, there’s
almost no risk involved because it is more about holding value however it will
be helpful to note that this should be a temporary vehicle and other long-term
options should be considered.
If you’re familiar with financial assets, then this
particular vehicle will not be foreign to you. These instruments refer to
ownership of shares in a publicly traded company. Stocks will most likely
outrun inflation and provide cumulative gains over a period of time, that is
why most people will jump at a chance to own shares in companies who open up
stocks to the public, just as MTN did in December, 2021. For example, if you
own 35 shares of MTN stock, you actually own a small piece of MTN and are entitled
to profit as MTN grows and generates more profits. However, your stock can fall
in value if MTN loses popularity and people aren’t trading with them as much as
This particular investment vehicle requires the
participation of a pool of people with investment interests. It represents
purchase of a group of assets and only trades at the close of market each day. If you are a shareholder with relatively small
capital as compared with other investors, you still have a fair advantage in
making profit and risking loss in proportion to your investment portfolio.
Essentially, with an effective management style, you can gather financial
security for the future.
Rental Real Estate
When you choose a self-liquidating asset such as this, and
with the right partners such as SmallSmall, this investment vehicle has the
potential to accelerate your wealth creation plan, providing you with positive
cash flow monthly, after all operational and facility expenses have been made. Long-term
investment in the rental market, is a sure way to gain financial freedom over
time as appreciation happens naturally.
You can hire the services of a finance manager to guide you
through all the pros and cons of each vehicle and share your findings with us.
Don’t forget to share with a friend.