Where could you Introducing the different areas in which to invest When it comes to choosing where to invest, the option you go for is invest? likely to depend on how you feel about risk and what you need from your investment. Cash Bonds Property Equities Or... Cash grows only by the interest Bonds are generally lower risk Commercial property offers Equities have the potential for It is possible to create what’s rate applied to the savings than equities and provide a the combination of a stable, strong growth, but also come called a ‘diversified portfolio’, account. When the interest regular income, with more long-term income and potential with the possibility for greater meaning an investment rate is lower than the rate of growth potential than cash. for some growth. As leases losses. portfolio that is made up of inflation the actual value of This is because bonds typically on commercial property a combination of some or all your savings will go down. The have fixed lifetimes, at the end tend to be quite long, they of cash, equities, bonds and reason why cash savings are of which whoever holds the produce a more secure and property. This might offer perceived to be the safest home bond will be repaid the original regular flow of income than more stability through the ups for your money is because up to price of the bond. With equities, residential property. and downs in markets and £75,000 of your money is secure there is no guaranteed rate – it economies, because different in a bank or building society is always up to whatever the types of investments tend to through the Financial Services market is willing to pay. rise or fall at different times and Compensation Scheme, unlike at different rates. stocks and shares or fixed interest investments which are less secure. Cash savings are perceived to Bonds offer the potential for a Property has the potential for Equities are higher risk than be the safest way to invest, but regular income and tend to be greater returns than bonds over bonds, property and cash, returns are not high. lower risk than property and the long term. However, it tends but they also offer the most equities. to have less growth potential potential for strong growth. than equities. 4