It is important to diversify your investments into different asset classes as every asset class have their
own advantages and disadvantages. There are four primary asset classes:
Usually your investment will be placed in money market instruments.
Bonds are issued when the government, parastatals and companies need capital in order to invest in
their infrastructure. They issue bonds with a nominal interest rate that becomes payable on the coupon
date which can be monthly, bi-monthly, bi-annually or annually. At a predetermined time in the future
they will repay the capital to the bond holder.
Bonds are tradable investment instruments that can be bought or sold on the bond market.
Listed property is companies or funds that invest in commercial property like office blocks or shopping centres.
The growth on a listed property is twofold; you can get a distribution from the income of the rental of such property
and capital appreciation as the shares of such companies is traded on the stock exchange.
Before you start with your investment portfolio consider consulting with a CFP® professional..