Types of investment
There are a number of different types of investment. These are called asset classes.
There are four main asset classes; shares, bonds, property and cash deposits. There are riskier alternatives to these traditional asset classes which tend to appeal to the more sophisticated investor. However, you may find yourself investing in alternative assets because they are included in the assets of a pooled investment.
Alternative investments provide the advantages of potentially higher returns and are used for diversification. However, they can be complex and expensive and are generally viewed as high risk investments.