Investment Instruments

Today, with the rapid development of technology, many changes have occurred in financial services. While in the past we had to go to a branch of a bank to make the smallest transaction, now we can perform many transactions such as taking out loans, paying rent and bills, depositing insurance, from mobile applications on our phones, without even needing a nearby ATM. With the development of financial services, it is just as easy to open an investment account with a brokerage firm or bank.

As all transactions can be done with one click and people are locked in their homes during the pandemic, many people have started to evaluate their previous savings by investing in various investment instruments. With the popularity of investment instruments and the sharing of content by influencers on social media, many people have been trying to generate income by investing in various instruments. Unfortunately, since every individual does not have enough information about investment tools, they lost their savings by investing money in investment tools they heard from right to left and acting unconsciously. Now, before we start investing, let's examine the investment instruments according to the increasing level of risk.

Bonds and Bills

Debt securities issued by the goverments, public or private companies to meet their cash needs are called bonds and bills. By purchasing these securities, investors lend to the government or institutions. Long-term debt securities are called government bonds, and medium/short-term debt securities are called treasury bills. Bonds and bills have low risk and low returns.

Precious Metals

Precious metals are investment instruments that are used periodically to evaluate opportunities. Gold, silver, iron, steel and copper are among the most popular precious metals. Precious metals are seen as a safe shore by investors during fluctuations in the global economy, during periods of war and epidemics.

Investment / Mutual Funds

Individuals who do not have enough knowledge about investment instruments or do not have time to invest may prefer to invest in funds managed by professionals. Investment funds can consist of many investment instruments such as stocks, bonds and bills, foreign securities, precious metals. In this way, investors have the opportunity to reach several investing instruments by investing in only one.

Stocks / Shares

Stocks can be defined as shares that investors can buy to become a partner in publicly traded companies. The risk and return ratio of stocks can vary. While the stocks of some large companies may not yield much, they are safe and regularly pay dividends beside the point increase in the share price. While small and growing companies have the potential to generate more profits, you run the risk of losing a portion of your principal.

Futures and Options (F&O)

Futures and options can be defined as the markets where trading is made in the digital environment regulated for certain capital market instruments and other investment instruments traded on various exchanges. In futures and options, you can also make both-sided predictions about leveraged transactions and the course of the market and direct your investments accordingly.

Eurobond

Eurobonds are debt instruments that the governments or companies offer for sale in foreign currencies in international markets in order to obtain funds from investors outside their own countries.

Forex

The term forex is used as an abbreviation of the phrase “foreign exchange” and means to exchange currency. Forex is a market where currencies of various countries are bought and sold and investors aim to profit from the fluctuations that occur between these currencies.

Cryptocurrency

Cryptocurrencies are digital products that are used as virtual currency, which do not actually exist and are not connected to any center. Although Bitcoin is the first cryptocurrency, other cryptocurrencies are called “altcoins”. Since the cryptocurrency exchange is speculative, it can be risky for short-term investments. In addition, investors can invest in the coins of the projects they like.