Investment Product

DEFINITION of 'Investment Product'

A product purchased with the expectation of earning a favorable return. Investment products can be income-producing, as with fixed-interest earning products, or more speculative in nature, as with stocks and options. A wide variety of investment products exist, including, but not limited to, stocks, options, futures, bonds, mutual funds, certificates of deposit, money market investments, ETFs and annuities.

BREAKING DOWN 'Investment Product'

Investment products are available for individual and institutional investors, and are purchased in an attempt to generate a profit. Some investment products, such as certain types of bonds, provide a fixed interest payment in addition to a return of the initial investment at the time of maturity. Other types of investment products, such as stocks, entail greater risk and while earnings (and profits) are anticipated, they are not guaranteed. An investor who diversifies will have a variety of investment products in his or her portfolio to manage risk.

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