Traditional investments

In finance, the notion of traditional investments refers to putting money into well-known assets (such as bonds, cash, real estate, and equity shares) with the expectation of capital appreciation, dividends, and interest earnings.

The value of the investment changes as the level of general interest rates fluctuates, causing the bond to become more or less valuable.

[2] In real estate, money is used to purchase property for the purpose of holding, reselling or leasing for income and there is an element of capital risk.

In many cases the buyer does not have the full purchase price for a property and must borrow additional money from a bank, finance company or private lender.

Investors may purchase commercial property outright, with the help of a loan, or collectively through a real estate fund.