- Banks
- Bonds
- Credit Cards
- Currency
- Cash
- Mutual Funds
- Insurance
- Options
- Real Estate
- Stock Market
- Superannuation
- Tax
- Trading
Cash or fixed-income investments are a form of investment almost everyone is familiar with. This form of investing represent lending money in return for interest. The common features for these types of investments are that they:
- earn interest, and
- are paid back after a period of time.
Cash or fixed-income investments are considered to be a defensive investment asset class. Read more about asset classes here. For this reason, common scenarios for this asset class are the following:
- Saving or parking money in the short-term,
- Keep money you don't want to lose. It is advisable to keep some cash available for emergencies (see some more financial tips here),
- Saving for a goal or a larger purchase in the future,
- Reduce risk in investment portfolio by earning a fixed income and offering stability in comparison with other forms of investment.
They are further divided into several sub-categories. At the moment I use the division into:
Read more about this type of investments at Fido - Australian Securities and Investment Commission site (link).
