Property compared Cash savings are perceived to be the safest way to invest, but returns are not high. with other types of Property has the potential for greater total returns than bonds over the long term. However, it investments tends to have less growth potential than equities. Bonds offer the potential for a regular income and tend to be lower risk than equities but have less chance for strong growth. Equities (also known as shares) are higher risk than bonds, property and cash, but they also offer the most potential for strong growth. Costs associated with buying and selling properties are generally higher than those for equities and bonds. Should you choose property over Equities have the potential for strong growth, but also bonds or equities? come with the possibility for greater losses as their value When it comes to choosing where to invest, the option fluctuates more and there is no obligation to pay the you go for is likely to depend on how you feel about risk shareholder back the original amount they invested. and what you need from your investment. Property can also be an appealing way to increase the Bonds are generally lower risk than equities as there is level of diversification in a portfolio focused on equities an obligation to pay the bond holder back the original and bonds. This is because it tends to perform very amount they invested. Bonds provide a regular income differently when market or economic conditions change. with more growth potential than cash. Diversification is a useful way to reduce risk in a portfolio. Up to £75,000 of your money is secure in a bank or building society through the Financial Services Compensation Scheme, unlike stocks and shares or fixed interest investments which are less secure. Property offers the combination of a stable, long-term income and potential for some growth. 5
