- Stocks (also called shares or equities) are securities that signify ownership in a publicly held company. Stocks may outperform other asset classes over long periods and have high volatility in the short term.
- Bonds (or fixed-income investments) are securities that represent corporate or governmental debt obligations. Bonds usually provide steady income based on interest rates and are regarded as safe investments in both the long and short term.
- Cash assets are investment securities that have low risk and are repaid in the short term (often less than a year). Cash investments usually offer better return than interest rates paid by banks. They are suitable for short-term investing.
- Real estate (or property) comprises land and buildings. The value of real estate greatly depends on its surroundings and geographical area. Though real estate may provide a predictable income stream, regulatory rules differ across regions, making it a complicated investment option.
- Commodities (physical goods) represent another complicated investment option that is not offered by financial platforms.
Vasyl Soloshchuk, CEO and co-owner at INSART, FinTech & Java engineering company. Vasyl is also author of the WealthTech Club blog, which conducts research into Fortune and Startup Robo-advisor and Wealth Management companies in terms of the technology ecosystem.