Guest Writer: Stewart Smith is a financial analyst and writer. He has written some great articles on topics like bankruptcy, investment opportunities, debt relief and more. He has created diverse content for the edification of various finance communities.

Feeling glum because you are facing financial adversity and heading towards debt management program? Investment can be a solution to your worries. If you are a newbie investor, initially you might get baffled by the typical investment jargons, terminologies and the numerous ways and types of investments. If you want them to be explained in layman’s terms, this article gives you some gleaming light of hope. Read on to get an overall idea about different investment vehicles and choose the suitable investment instrument keeping in mind different investment objectives, their basic characteristics, return and risk factors.

What is Mutual Fund?

The capitol in mutual fund is provided by different investors like you and me and this fund is generally managed by a professional manager in an investment financial institution. The fund manager selects different or specific securities to invest into, such as blue chip stocks, small penny stocks, government bonds, corporate bonds, overseas stocks, gold index, index fund, etc. The mutual fund aims for a minimum return of 3%-10% or some aggressive ones have 15%-20% return. However, remember, mutual fund investment which offer greater potential returns involves greater risk with them.

What is Bond investment?

Bonds are generally defined as securities founded on debt. In bond investment you are actually offering your money to either corporate bonds or government bonds for their business development, in return you get interest and once the bond is due or expired, you can retrieve the total amount you lend to them. Bond investment is relatively more stable and has low to moderate ROI interest rate.

What is Stocks?

Stocks or shares are nothing but equities of a listed or private company. If you hold enough stocks of a company, you become part business owner and even get the right to vote at annual general shareholder’s meeting. The stocks you hold can pay you dividends which are a form of ROI interest. However, remember investing into stocks involves higher risk than investing in mutual funds or bonds but at the same time it ensures potential higher return as well. Stock movement certainly is a risky business as the value fluctuates daily and gets easily influenced by news and speculations. Though you can make fast money in stock you can lose it even faster.

Gold Investment

Gold Investment is a simple and traditional investment vehicle where you can invest in gold index, gold certificates, gold coins, gold bar and even gold self collectibles and gold beauty accessories.

Forex 

Forex trading is all about trading foreign exchange currency market, where one currency is traded to another. The Forex market generally operates 24 hours a day and start from US market, to Asia then to Europe and back to US in a round. If you like to start trading Forex you must have an account with a licensed Forex Exchange Investment institution broker.

Wine Investment

Wine investment was first introduced in Europe. When the wine is bottled and set aside to ripen it is cater for investment and then when the wine is mature, ready to sale after several years, it could generate good return.

Hopefully all these above mentioned points will help you to achieve success in the investment market. Wish you luck with your new investment venture.