Investment Ideas


DEFINITION of 'Investment Ideas'

Specific views, plans or ideas on ways to invest money effectively. Investment ideas typically involve the expertise and advice of an investment advisor who recommends different investment tools based on individual circumstances.

BREAKING DOWN 'Investment Ideas'

One of the main factors determining what investment idea a particular investor will employ depends on that person's stage of life. Investors who are young can take on more risks, and an advisor will likely recommend stocks or mutual funds to younger investors. Investors who are approaching retirement, however, will most likely find it more beneficial to take on lower-risk, short-term investments such as bonds and T-bills. Another factor that affects investment ideas is the risk-return tradeoff. Each investor has his or her own sensitivity to risk, which will influence investment decisions.

  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Risk Averse

    A description of an investor who, when faced with two investments ...
  3. Risk-Return Tradeoff

    The principle that potential return rises with an increase in ...
  4. Risk Lover

    An investor who is willing to take on additional risk for an ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
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  1. Do mutual funds pay dividends?

    Depending on the specific assets in its portfolio, a mutual fund may generate income for shareholders in the form of capital ... Read Full Answer >>
  2. Can mutual funds invest in hedge funds?

    Mutual funds are legally allowed to invest in hedge funds. However, hedge funds and mutual funds have striking differences ... Read Full Answer >>
  3. What are the risks of annuities in a recession?

    Annuities come in several forms, the two most common being fixed annuities and variable annuities. During a recession, variable ... Read Full Answer >>
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    Financial advisors are reimbursed by mutual funds in exchange for the investment and financial advice they provide. A financial ... Read Full Answer >>
  5. Why is fiduciary duty so important?

    Fiduciary duty is one the most important professional obligations. It basically provides a much-needed protection for individuals ... Read Full Answer >>
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