Investing Crossword Puzzles: Investment Objectives

When evaluating what investment strategy is best for you, consider the objectives discussed below.

Capital Preservation is a conservative strategy of investing in fixed income investments or insured investments that attempts to avoid loss and protect the initial investment. Depending on age and limited time available to recoup losses, preservation of capital is an important goal for investors.

An investment with a tax advantage offers a tax benefit. These benefits could be a tax exemption or a tax deferment. Examples include municipal bonds, partnerships, unit investments, and annuities.

A tax-sheltered income is income that is not taxable due to a non-cash deduction, such as depreciation (for example, a 403(b) plan, which is a tax-sheltered annuity plan).

A growth objective is an investment strategy that focuses on capital appreciation. The goal of this type of fund is to increase the value, so the fund is focused on investments that will increase in value, though this is often combined with higher risk.

Investing on speculation means trading in an asset or conducting a financial transaction that has a significant risk of losing most or all of the initial investment, with the expectation of a substantial gain. The expectation of substantial gains acts as an incentive that more than offsets the risk of loss.

Across

4. A fund with a focus on capital appreciation has a goal of _____.

6. A conservative strategy of investing in fixed income investments or insured investments that attempts to avoid loss and protect the initial investment. (2 Words)

Down

  1. A type of investment objective that focuses on the increase in the value of assets (2 Words)
  2. Income that is not taxable due to a non-cash deduction, such as depreciation (for example, a 403(b) plan) (3 Words)

 

  1. A type of investment account that offers a tax benefit, whether it be exempt from taxation or tax deferred) (2 Words)

 

  1. Trading in an asset or conducting a financial transaction that has a significant risk, in exchange for the potential for significant gain.