There are different kinds of investments that you can choose from. In fact, you may find these choices confusing especially if you are a novice investor. So to simplify things, we group them into mainly cash, bonds, and stocks. Choosing these three types of investment are influenced by the amount of risk tolerance you have, and also by the type of investor that you are.
Conservative investors with a low risk tolerance invest in cash; in this sense, they put their money in a savings account or the likes. Considered as investments with the slowest growth, cash is also the safest. You can actually put your money into the bank and just let it grow without the constant need and hassle of watching over it. Just be sure that you have chosen a reliable bank to save your money.
The moderate investors on the other hand usually invest in bonds and cash, but they would sometimes go for the stock market if they believe that there is low risk and high profit. They will pull out at the first sign of loss.
If you are an aggressive investor, that is to say, you have a high risk tolerance, you tend to go for investments in the stock market with higher risks and profits. You may also want to try on real estates or other businesses.
So, before deciding where you should invest, you have to determine what type of investor you are and how high or low your risk tolerance is. You should also make a profound research on the type of investment that you’ve chosen.