| Comparison of the returns that can be earned from different types of financial instrument (bank deposits, bonds, shares, unit trusts, investment trusts, property) and the risks that are attached to them. Government bonds are the safest investment as a government is most unlikely to default but the interest payable is relatively low. In contrast, investment in equities will normally give greater returns over the long-term but the risk is much higher as in the short-term they could easily fall in value.
|
