Securities Investment Strategies Tailored for Your Portfolio

One of the most well-understood securities, stocks are straightforward to own but can be complicated to choose or manage effectively. They come in multiple forms, like common stocks or preferred stocks, each of which can have their own benefits. Stocks enable investment managers to develop targeted portfolios customized to the achieve goals of investors. 

Bonds, or debt securities, have a reputation for being safe in the right circumstances, like U.S. Treasury bonds that are considered to have virtually no default risk. However, not all bonds hold AAA ratings with Standard & Poor’s or the other rating agencies. The riskiness of each bond influences its grade and the potential return. 

Derivative securities can be complicated and carry more risk than other types of securities given the potential obligation to purchase or sell an asset at a future date, regardless of price. They can be a powerful tool for wealth generation but also a great source of risk. 

There are a variety of investment funds available to all types of investors, regardless of the size of their portfolio. These include things like exchange-traded funds (ETFs), index funds and mutual funds. Each fund type can function differently. For example, ETFs can be traded on exchanges in virtually the same way as individual stocks, while mutual funds are only priced once a day based on net value and can only be traded after market. Some funds, like hedge funds, are often only available to accredited investors who have income or net worth exceeding certain thresholds and the liquid capital to afford the minimum investment. 

These trusts allow investors to pool their money in large, income-generating real estate investments and related products. Shares of equity REITs represent the part ownership of certain types of real estate (like commercial properties), while mortgage REITs are investments in property loans.