Hedge Investment

• Stocks

  Stocks, also known as shares or equities, might be the most well-known and simple type of investment. When you buy stock, you’re buying an ownership stake in a publicly traded company. Many of the biggest companies in the country are publicly traded, meaning you can buy stock in them. Some examples include Exxon, Apple and Microsoft. How you can make money: When you buy a stock, you’re hoping that the price will go up so you can then sell it for a profit. The risk, of course, is losing money if the stock price goes down.



• Bonds

  When you buy a bond you’re essentially lending money, generally to a business or government, for a set period of time. Companies issue corporate bonds, whereas local governments issue municipal bonds. The U.S. Treasury issues Treasury bonds, notes, and bills. How you can make money: While the money is being lent, the lender or investor gets interest payments. After the bond matures, meaning you’ve held it for the contractually determined amount of time, you get your principal back. The rate of return for bonds is typically much lower than stocks, but bonds present lower risk. There’s still some risk involved, of course. The company you buy a bond from could fold or the government could default. Treasury bonds, notes and bills, however, are considered very safe investments.



• Mutual Funds

  A mutual fund is a pool of many investors’ money that’s invested broadly in a number of companies. Mutual funds can be actively managed or passively managed. An actively managed fund has a fund manager who picks securities on behalf of investors. Because of this responsibility, fund managers often try to choose investments that will outperform a designated market index. A passively managed fund, also known as an index fund, simply tracks a major stock market index like the Dow Jones Industrial Average or the S&P 500. Mutual funds can invest in a broad array of securities: equities, bonds, commodities, currencies, and derivatives. Depending on the investments, mutual funds can carry many of the same risks as stocks and bonds. The risk is often lesser, though, because the investments are inherently diversified. How you can make money: Investors make money off mutual funds when the value of stocks, bonds and other bundled securities that the fund invests in go up. You can buy them directly through the managing firm and discount brokerages. But note there is typically a minimum investment and you’ll pay an annual fee.

(Hedge Investment)

(Hedge Investment) are similar to mutual funds in that they are a collection of investments that track a market index. Unlike mutual funds, which are purchased through a fund company, shares of Hedge Investment are bought and sold on the stock markets. Their price fluctuates throughout the trading day, whereas mutual funds’ value is calculated at the end of each trading session using the net asset value of your investments.

• How you can make money

  
  Hedge Investment make money from the collection of returns among all of their investments. Hedge Investment are often recommended to new investors because they’re more diversified than individual stocks. You can further minimize risk by choosing an HI that tracks a broad index. And just like mutual funds, you can make money from an HI by selling it as it gains value.