Investing Wisely from Your Apartment in Gainesville, FL

Anytime is a good time to consider putting some money aside and investing it in places where it has a chance to grow. While investing can be complex, especially for someone that has had little experience with it, this article will seek to give a basic outline of the many types of investments available as you consider what to do with your money.

The most common types of investments are:

• Equities – Equities, more commonly known as stocks, are created when a company decides to divide itself into a number of “shares” and sell of pieces of itself in an effort to generate revenue. When you purchase company stock, you become a part owner of the company, and can attend shareholder meetings and may receive quarterly, bi-quarterly, or yearly dividends (payments to you) from the company. If the company does well and its stock value rises, you can sell the shares you purchased for a greater value than what you bought them for, which is often one of the biggest moneymaking draws of buying stocks. While it is theoretically possible to get very rich just by understanding and playing the stock market, the inherent volatility of the market makes doing so financially risky, since a plummet in stock price could ruin your investment. Before you purchase stocks, be sure to do plenty of market research and consult a financial advisor both to assess your risk tolerance and determine which companies to buy stock from.
• Bonds – Bonds, or fixed-income securities, are a type of investment where you lend money to the government or a large corporation in return for their promise to eventually pay you back with interest. Bonds are fairly low risk as far as investments go, especially if they are purchased from billion dollar corporations or the government, but their potential for high returns is much lower than that of riskier investments.
• Commodities – Commodities are products or substances that are essential for use in society, including gold, silver, oil, farm products, and more. The prices of commodities are driven by supply and demand, and therefore their futures are difficult to predict. While investing in commodities can be very profitable, as with all very profitable investments, it can be very risky as well.
• Mutual funds – Mutual funds are the pooled money of many investors (hence their name) collected into a number of stocks, bonds, and other investments. This collective fund is then managed by a professional or group of professionals, who will then hopefully steer the fund to maximum profitability. Mutual funds are generally considered to be low risk and have low to medium returns, their primary advantage being that they can be invested in quickly and with much less research than other investments.

Hopefully, by gaining a better understanding of the different kinds of investments, you’ll be better able to invest wisely from you apartment in Gainesville, Florida. At Bellamay Grand Apartment Homes, our residents are always our first priority. To learn more about our luxury apartments, contact our front office or fill out a contact us form today.