Got some extra cash? and want to make it grow? The best option is to look for a financial expert and get the right investment option for yourself. Steinpag Business Lawyers have provided continuous service and quality legal advice in relation to financial services matters for approximately 15 years. Their typical financial services clients include property syndicates, managed investment schemes, listed investment companies, stockbrokers, financial planners and professional services firms providing expert reports.
If you are looking for a stable and reliable return then investing in government and corporate bonds works pretty well. A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, M&A, or to expand business. The term is usually applied to longer-term debt instruments, with maturity of at least one year. Corporate debt instruments with maturity shorter than one year are referred to as commercial paper. So if you are say investing for retirement then a mix of bonds with short-term, mid-term and long-term maturity help accumulate money for retirement. Interest on bonds is usually bi-annual. Bonds with a higher risk pay good returns whereas bonds with a low risk give less returns. Bonds rated triple-A (AAA) are the most reliable and the least risky; bonds rated triple B (BB) and below are the most risky.
An equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and firms in anticipation of income from dividends and capital gains. Equity shares can be risky though buying equities such as publicly-listed shares can provide high returns.
Term deposits are another popular form of investment. A term deposit is an investment for an agreed rate of interest over a fixed amount of time, known as a term. The rate of interest varies with the term agreed upon. This term can be a period of anything between 1 month to 5 years. Again a 5 year investment will attract a better interest than an investment of 3 months or 6 months. The the interest rate is guaranteed not to change for that nominated period of time. The money can only be withdrawn at the end of the period – if taken out earlier then the penalty attached with the investment option is applied.