28 August 2022
With regards to financial investing, never put all your eggs in one basket.
To reduce risk, it is usually preferable to diversify your investments across various asset classes.
You can gain from the stock in the form of dividends or capital growth.
Debt assets have more stable returns and are less volatile. (PPF, FDs, etc.)
Any raw resource that is tradable is a commodity. - Gold, Silver, Copper, Metal
Because you can freely decide to spend or save cash according to your needs, it is a simple, liquid form of investment.
Cross-border investment returns may be influenced by currency.
Given its potential for huge profits, real estate has always been a darling for investors.
Securities that do not fall into any of the recognized categories are included in the alternative asset class.
There is no "right" asset class; you must pick the ones that fit your risk tolerance, financial objectives & time horizon.
The secret to building long-term, risk-adjusted wealth is asset allocation. Depends on the expected returns, time horizon, and risk tolerance.