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Quarter 4 – Week 3: The definition,
purpose, kinds, advantages, and
disadvantages and the risks of
investment
Lesson 1 – The Different Types of Investments.
Writer:
ROSARIO D. LOPEZ
MT-I Becuran High School
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
ELSA A. LAQUINDANUM – MT- I
CHRISTINA P. SANTOS – MT- I
What I Need to Know
This module was designed and written with you in mind. It is here to help you master the
Different Types of Investments. The scope of this module permits it to be used in many
different learning situations. The language used recognizes the diverse vocabulary level of
students. The lessons are arranged to follow the standard sequence of the course. But the
order in which you read them can be changed to correspond with the textbook you are now
using.
True or False: Write True if the statement is correct and False if it is wrong.
For instance, if the stocks were bought at P200 per share and after one year the
investor was able to sell them for P300 per share, then the investor would have earned
P100 per share. If there is a total of 1,000 shares, then the profit would be P100,000.
What’s In
FINDING WORDS:
Let’s raise your level of investment skills. Draw a line connecting the letters to form
words suggested in the box.
1. Preferred
2. Securities
3. Investments
4. Bonds
5. Funds
M F R R Q S T S U D M A F R
O I I E U R Y N E E O L B U
C P M R E S F R O N T K O N
E R B V W O R U C P E B N D
K A C U P E T L N O W G D B
P P U X F S U M S D D U S I
I N V E S T M E N T S A N F
L M R L M A E O A P E L S K
M P O A S E C U R I T I E S
What is It
Different Types of Investments and their Features:
Types of Investments Features
1. Investing in a Bank Earns minimal interest, easily withdrawable, least
1.1 Savings account risky, insured with PDIC up to P500,000.
1.2 Time deposit Higher interest, withdrawal after the fixed time, i.e.
90days, one year, etc.,
2. Investment in Bonds Like an IOU (I owe you) issued by a government or
company with fixed interest rate-called coupon.
3. Investment in Shares Like buying a small part of a company, earnings
of Stocks through dividends and capital gains as price increases.
4. Managed funds An investment company, which pools the money of
various investors and invest that money in bonds,
stocks or a combination of various investments.
5. Investment in Property Can either be real property (real estate) or tangible
personal property (gold, precious metals, artworks,etc.)
What’s More
Types of Investments: As depicted by the image, choose which of the following is your
investment option and explain your answer by highlighting its features and
advantages:
1. An investment is any vehicle into which funds can be placed with the
expectation that they will generate positive income and/or increase in value.
2. The following are types of investments: investing in banks, bonds, shares of
stocks, managed funds and investment in property.
3. Each type of investment has its own unique features , advantages and
disadvantages in terms of security, returns, terms, liquidity , diversification,
convenience, fees and taxation.
4. There are a lot of types of investment to choose from. Some are perfect for
beginners, while others require more experience. Each type of investment offers
a different level of risk and reward.
5. Investors should consider each type of investment before determining an asset
allocation that aligns with their goals.
What I Can Do
Case Study
Your mother, who is an OFW, is coming home in six months. The last time you
spoke to her via online video call, she asked you to suggest three small businesses to
invest in. She said that she has allotted P500,000 as capital that would be divided
between the three businesses that you will recommend. You scribbled some possible
businesses and came up with the following options:
Possible Business Estimated Initial Capitalization
1. Barbershop P 180,000
2. Beauty parlor 140,000
3. Buy and sell of ready-to-wear clothes 75,000
4. Carinderia 90,000
5. General merchandise store 150,000
6. Milkshake business 75,000
7. Pizza stand franchise 120,000
8. Siomai stand franchise 200,000
9. Small bakery 200,000
10. Small grocery store 100,000
Assessment