Download INVESTMENT OPPORTUNITIES

INVESTMENT
OPPORTUNITIES
Risk and Return
Higher risk usually means a chance
at a higher return. Also means that
you could lose more money.
 Lower risk usually means lower
return.

Corporate Investing
Stocks
 Bond—A debt investment.
Essentially, it’s like LOANING money
to a corporation or government. They
“borrow” your money for a fixed
amount of time at a fixed interest
rate. LOW RISK

Money Market Funds
Savings accounts that yield a percentage
of return based on interest rates and
investments made by the money market
manager.
 Low risk, low interest, low yield
 Example: Treasury Bills (T-Bills) Mature in
1 year or less. usually issued in
denominations of $1,000, $5,000, $10,000,
$25,000, $50,000, $100,000 and $1 million.

Other positives are that T-bills (and all Treasuries) are
considered to be the safest investments in the world
because the U.S. government backs them
Mutual Funds
http://www.investopedia.com/video/play/introduction-mutual-funds#axzz1juFS30o6
Pool of funds from different
investors.
 May invest in stocks, bonds, money
market, etc. in an effort to increase
capital gains.
 Annual maintenance fees
 Some have a load—sales fee paid for
investing (typically 5 or 6%)
 Purchase through brokerage firms
