Investment Vehicle

AAA

DEFINITION of 'Investment Vehicle'

A product used by investors with the intention of having positive returns. Investment vehicles can be low-risk, such as certificates of deposit (CDs) or bonds, or can carry a greater degree of risk such as with stocks, options and futures. Other types of investment vehicles include annuities, collectibles (art or coins, for example), mutual funds and exchange-traded funds (ETFs).

INVESTOPEDIA EXPLAINS 'Investment Vehicle'

The term "investment vehicle" refers to any method by which individuals or businesses can invest and, ideally, grow their money. There is a wide variety of investment vehicles and many investors choose to hold at least several types in their portfolios. This can allow for diversification while minimizing risk.

RELATED TERMS
  1. Annuity

    A financial product that pays out a fixed stream of payments ...
  2. Aggressive Investment Strategy

    A portfolio management strategy that attempts to maximize returns ...
  3. Investing

    The act of committing money or capital to an endeavor (a business, ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. ...
  5. Investment

    An asset or item that is purchased with the hope that it will ...
  6. Contingent Annuitant

    Someone designated by an annuitant to receive the annuitant’s ...
RELATED FAQS
  1. Why choosing the right investment adviser is crucial for your portfolio's health

    Just as finding a good mechanic will help keep your car running smoothly, finding a good broker or financial advisor can ... Read Full Answer >>
  2. What are the most common leveraged ETFs that track the drugs sector?

    The most common leveraged exchange-traded funds (ETFs) that track the pharmaceutical industry are the two offered by Proshares: ... Read Full Answer >>
  3. What percentage of a diversified portfolio should be exposed to the aerospace sector?

    Diversification is an effective portfolio management technique used to prevent a sharp decline in an individual company or ... Read Full Answer >>
  4. How can an investor profit from a decline in the aerospace sector?

    Several forms of speculation enable investors to profit from a decline in the aerospace sector. Short selling aerospace stock ... Read Full Answer >>
  5. When is a put option considered to be "in the money"?

    An option contract is a financial derivative that represents a holder who buys a contract sold by a writer. The moneyness ... Read Full Answer >>
  6. Why would an investor consider purchasing electronic stocks for their portfolio?

    An investor would consider purchasing electronics stocks because that sector provides many opportunities for both quick profits ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    Credit Card Arbitrage: Free Money Or Dangerous Gamble?

    Credit card arbitrage is a way to make some money, but it's a major gamble with devastating risks.
  2. Options & Futures

    Hedge Funds Hunt For Upside, Regardless Of The Market

    Hedge funds seek positive absolute returns, and engage in aggressive strategies to make this happen.
  3. Options & Futures

    Having A Plan: The Basis Of Success

    It ensures that you have a realistic outlook, and a solid strategy. We show you why and how.
  4. Trading Strategies

    10 Reasons To Add ETFs To Your Portfolio

    We provide 10 reasons why adding ETFs to your portfolio can trump securities-only portfolio management strategies.
  5. Active Trading

    World's Greatest Investors

    Historically, the market has returned a solid 12% per year on average. The icons we'll present here represent the pinnacle of the financial world. Each one has dramatically exceeded market performance.
  6. Entrepreneurship

    Five Investing Pitfalls To Avoid, According to Investor's Business Daily

    Common sense or common folly? Discover some approaches to circumventing typical stumbling blocks on the road to profitable investing.
  7. Options & Futures

    20 Tools For Building Up Your Portfolio

    The only real difference between you and Warren Buffett is a few well-chosen stocks, and the billion-dollar fortune is the result.
  8. Options & Futures

    Investing 101: A Tutorial For Beginner Investors

    Do want to invest, but don't know how to begin? We'll show you the building blocks you need to get started.
  9. Active Trading Fundamentals

    Invest In Gold Through ETFs

    Steep barriers to entry in gold futures have spawned an assortment of gold based equity funds.
  10. Professionals

    Beware: These Bond Funds Act Like Stocks

    Beware of bond funds that act like stocks.

You May Also Like

Hot Definitions
  1. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  2. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  3. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  4. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  5. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  6. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
Trading Center