Investment Product

  

Categories: Investing

A bond. One that matures in 10 years is backed by Ford, and yields 7%. That's an investment product. A share of MSFT stock. That's an investment product.

Think of these items as "a la carte."

Roll them together and you get funds. Bond funds. Stock funds. Mutual Funds. Add peppers and spices called derivatives. And maybe you have a hedge fund. Want an investment lottery ticket? Try a venture capital fund. Many go completely bust, but every now and then, Silicon Valley pumps out one of these wherein investors get 50 times their money in a decade.

All investment products. Low cholesterol, even.

Related or Semi-related Video

Finance: What is a Sector Fund?5 Views

00:00

Finance allah shmoop What is a sect or fund All

00:06

right Well star wars and star trek captains are all

00:09

these barking about setting coordinates for sector for stat or

00:14

whatever they say That means urgent in the future right

00:16

We'll hear space here's sector four and it's Ah well

00:19

kind of a slice of space Ok now come back

00:23

to earth gently And as it applies to mutual funds

00:26

it's kind of the same notion that is A sector

00:29

comprises a particular discipline of investing Like think of it

00:34

like a slice of the s and p five hundred

00:36

Like one sector of the economy is banking Another is

00:40

tech Another is telecommunications And then there's oil and transport

00:45

And consumer durables in each of these areas has hundreds

00:48

of ways in which investors can invest in that particular

00:52

sector That is there are index funds that invest in

00:55

it Yeah Mutual funds hedge funds private equity funds Even

00:59

venture capital funds Each of whom has a particular discipline

01:02

or focus on lee in one sector More less so

01:06

why would you want to sector fund Well if you

01:08

believe that oil was about tohave an explosion in demand

01:12

the good kind of explosion Then you'd want to beam

01:14

or exposed to it financially at least to its upside

01:18

Then say you would technology which you feel has gotten

01:21

too expensive in the markets And its best days are

01:24

behind it It's A little like putting several of your

01:26

eggs into one particular basket because you really like that 00:01:30.519 --> [endTime] basket

Up Next

Finance: What is an Income Fund?
0 Views

An income fund is a fund designed to produce income for its investors. Wow. We never would've guessed.

Finance: What are Diversified v. Non-Diversified Funds?
2 Views

Diversified funds are those with a few "eggs" each in a ton of baskets. Non-diversified...all eggs in one basket. Recipe for disaster. Or for an om...

Finance: What is a quant fund?
0 Views

A quant fund is an investment fund, often featuring elements of hedging, that relies heavily on math. So... maybe stay awake in calculus. You might...

Find other enlightening terms in Shmoop Finance Genius Bar(f)