Investment Products Flashcards
Equities (Stocks) – Risk & Return
High risk, high return. Suitable for growth-focused investors.
Equities (Stocks) – Pros
High growth potential, dividends can provide income.
Equities (Stocks) – Cons
Volatile prices, value can fall quickly.
Government Bonds (Gilts) – Risk & Return
Low risk, low return. Ideal for conservative investors.
Government Bonds – Pros
Stable, predictable income. Very safe.
Government Bonds – Cons
Low returns, impacted by inflation.
Corporate Bonds – Risk & Return
Medium risk, medium return. More yield than gov’t bonds.
Corporate Bonds – Pros
Fixed income, moderate safety.
Corporate Bonds – Cons
Credit and interest rate risks.
Mutual Funds – Risk & Return
Varies based on fund type.
Mutual Funds – Pros
Diversified, professionally managed.
Mutual Funds – Cons
Management fees, may not outperform the market.
ETFs – Risk & Return
Medium risk, medium-high return. Tracks index.
ETFs – Pros
Low fees, easy trading, diversified.
ETFs – Cons
Market risk, no active management.
Real Estate – Risk & Return
Medium risk, medium return. Income + growth potential.
Real Estate – Pros
Rental income, long-term asset growth.
Real Estate – Cons
Illiquid, high maintenance/tax costs.
Private Equity / VC – Risk & Return
Very high risk, very high potential return.
Private Equity – Pros
Can deliver massive profits.
Private Equity – Cons
Illiquid, high failure rate, long-term commitment.
Hedge Funds – Risk & Return
High risk, potentially high return. Complex strategies.
Hedge Funds – Pros
Flexible, use short-selling, leverage.
Hedge Funds – Cons
Expensive, opaque, not regulated like mutual funds.
