Types of Investment Securities

Written By Jonathan Sheahan

There are a number of different types of investment instruments that can be used to populate a Portfolio, whether it be a Pension, Charity or Direct Investment.

The main types are:

  • Individual Shares & Bonds

  • Exchange Traded Funds (ETFs). These are passive, low-cost investment instrument to simply track an index.

  • Investment Trusts & Real Estate Investment Trusts. These are listed instruments whereby the Net Asset Value (NAV) is independent of the listed price of the Investment.

  • Collective, Open-Ended Funds. This is where the the Net Asset Value is linked to the Unit Price of the fund

There are pros and cons of each type of security within a Portfolio. In Compass Private Wealth, we believe that Portfolio Construction should be tailored to each client, and therefore we sit down with the client and consider all Investment types in the context of:

  • Their tax affairs

  • Fees & Charges

  • Their personal preferences

  • Other Factors


Jonathan Sheahan
Managing Director of Compass Private Wealth, Dublin
www.CompassPrivateWealth.ie
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