Investment refers to the concept of deferred consumption, which involves purchasing an asset, giving a loan or keeping funds in a bank account with the aim of generating future returns. Various investment options are available, offering differing risk-reward trade offs. An understanding of the core concepts and a thorough analysis of the options can help an investor create a portfolio that maximizes returns while minimizing risk exposure.

• Cash investments: These include savings bank accounts, certificates of deposit (CDs) and treasury bills. These investments pay a low rate of interest and are risky options in periods of inflation.

• Debt securities: This form of investment provides returns in the form of fixed periodic payments and possible capital appreciation at maturity. It is a safer and more 'risk-free' investment tool than equities. However, the returns are also generally lower than other securities.

• Stocks: Buying stocks (also called equities) makes you a part-owner of the business and entitles you to a share of the profits generated by the company. Stocks are more volatile and riskier than bonds.

• Mutual funds: This is a collection of stocks and bonds and involves paying a professional manager to select specific securities for you. The prime advantage of this investment is that you do not have to bother with tracking the investment. There may be bond, stock- or index-based mutual funds.

• Derivatives: These are financial contracts the values of which are derived from the value of the underlying assets, such as equities, commodities and bonds, on which they are based. Derivatives can be in the form of futures, options and swaps. Derivatives are used to minimize the risk of loss resulting from fluctuations in the value of the underlying assets (hedging).

• Commodities: The items that are traded on the commodities market are agricultural and industrial commodities. These items need to be standardized and must be in a basic, raw and unprocessed state. The trading of commodities is associated with high risk and high reward. Trading in commodity futures requires specialized knowledge and in-depth analysis.

• Real estate: This investment involves a long-term commitment of funds and gains that are generated through rental or lease income as well as capital appreciation. This includes investments into residential or commercial properties.

•Accredited Investments: What is an accredited investor? An individual accredited investor is generally someone who has a net worth over $1,000,000 or makes over $200,000 per year in the immediate preceding two years. If you fit into this category you may be eligible for many investment opportunities such as hedge funds, private placement financing and more. We here at Rise Rayan Fianancial, occasionally comes across such opportunities and invites accredited investors to be placed in contact with us to learn more.

•Registered Retirement Savings Plans (RRSPs)
Starting and building a Registered Retirment Savings Plan (RRSP) will likely be one of the most important steps you take in your financial life. There is no better way to reduce your taxable income and save for the future.

RRSP contributions can be used to reduce Canadian contributor's income tax up to a certain limit. RRSP is one of the few tax shelters Canadian can use. Any income earned in the RRSP is exempt of tax until the RRSP account owner start drawing funds from it. You can contribute in RRSP until the age of 71. We

offer self-direct RRSP account, which is simply a brokerage account through which you can buy and sell mutual funds, company shares, bonds and anything that is allowed to be held in RRSP.