THE DIFFERENT TYPES

OF INVESTMENTS
 LESSON OBJECTIVES:

After going through this lesson, you are expected to:

• 1. Compare and contrast the different types of
investments.
• 2. Differentiate investment according to its type and
features.
• 3. Enumerate advantages and disadvantages of the
different types of investments.
 Stretch Your Financially Inclined Mind

RUNSTER =___________
Clue:
It is the amount of money earned from investments.
 Stretch Your Financially Inclined Mind

DAMAGEN NUDFS=___________
Clue:

Are companies or trust funds that pool money from various

investors through a fund manager, who in turn, invests that
collected money in stocks, bonds, or a combination of various
investments
 Stretch Your Financially Inclined Mind

REVFITINOSAIDIC=___________
Clue:

This means that investors who don’t have enough money can have
the opportunity to buy different types of investments through
pooling of funds of other investors.
 Stretch Your Financially Inclined Mind

REDHASHEROL =___________
Clue:

Someone who invest in the stock of a business.

 Stretch Your Financially Inclined Mind

DILEY =___________
Clue:

The return that you would expect if you hold the bond for a year and
is expressed in percentage
• An investment is any type of asset that is acquired by
an investor with the intent to utilize it to generate
income and eventually accumulate wealth. Finance
professionals view investment as a monetary asset,
like a bond, a stock or any type of financial instrument
which is purchased and in due time will be sold,
hopefully at a higher price.

• 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.
 Different Types of Investments and their Features:

Investing in a Bank
-Savings account
-Time deposit

Features
• Earns minimal interest, easily withdrawable, least risky, insured with PDIC
up to P500,000.
• Higher interest, withdrawal after the fixed time, i.e. 90days, one year, etc.,
 Different Types of Investments and their Features:

Investment in Bonds

Features
• Like
an IOU (I owe you) issued by a government or
company with fixed interest rate-called coupon.
 Different Types of Investments and their Features:

Investment in Shares of Stocks

Features
• Like buying a small part of a company, earnings through
dividends and capital gains as price increases.
 Different Types of Investments and their Features:

Managed funds

Features
• An investment company, which pools the money of various
investors and invest that money in bonds, stocks or a
combination of various investments
 Different Types of Investments and their Features:

Investment in Property

Features
• Can either be real property (real estate) or tangible personal
property (gold, precious metals, artworks,etc.)
ADVANTAGES AND DISADVANTAGES OF
INVESTMENT
ADVANTAGES AND DISADVANTAGES OF
INVESTMENT
ACTIVITY 1
Draft an e-mail for your mother containing the following:
1. The top three recommended businesses that you would
recommend to your mother.
2. Give at least three reasons as to why you chose the
business you have recommended, which include your
opinion on which you think would be most profitable, feel
free to quantify your opinion if you wish but this is not
necessary.
3. Give at least two disadvantages for each business
recommended.
Write your activity on one whole sheet of yellow paper.
(deadline of passing- Wednesday morning)
Research Work:
Direction/Required: By group
Font: 12, Times New Roman; Single Space, Minimum of 5 Pages
Format:
1. Introduction
II. Body
III. Summary
IV. References: If thru internet, please indicate the web site
Ex. https://en.wikipedia.org/wiki/Means _of_production
Book references:
Ex. Author, Title of the book, place published, year

Research topic:
Research on what is the most invested field from the year 2017 to
2018.
(Example: Real estate, stocks)