The modern approach bases investment decisions primarily off of risk vs. return. What are they • Traditional investments include gold and fixed deposit whereas New Era Investment comprises of various forms of mutual fund. 2. Go for New-age Options: It is therefore time to explore other options and move beyond traditional investments. A modern approach primarily looks at the investor’s risk comfort level, and then chooses securities to invest in from there. Traditional investments can include equities, fixed interest securities, funds and cash. They can pay out income in a variety of ways. The characteristic of many investments is risk and uncertainty. ... Deshmukh, Vinay Vijaykumar, Traditional Investments vs. 81 - 90 of 500 . This may be extremely beneficial to potential investors because the low correlation provides opportunities for portfolio diversification. Low correlation with the traditional investments. One significant distinction between traditional investments and their alternative counterparts is the minimum investment requirement and the fee structure. When it comes to growing your money, investing is the key. Fixed Deposits, investment in gold, and many other traditional options are losing grounds when trying to woo the new age investors. Traditional investments, such as mutual funds, often require minimum investments of roughly $2,000, … Whether Indian investors will still be investing into traditional investments like plain vanilla avenues like stocks, bonds and cash or they will change their mindset like their western counterparts for Financial Engineering Products. Instead of funneling your earnings into a bank account to sit, take advantage of traditional investments in order to gain more significant returns on your money without overcomplicating things. Traditional Types of Investments Versus the New Investment Era 2. Traditional types of Investments vs the new Investment era 1. There are many types of investment vehicles, and some can prove more advantageous depending on your money goals. Some common alternative investments are real estate, commodities and private equity. It has been even observed that millennials are slow to start investing … Whether you decide to invest in traditional assets, or traditional and alternative assets, diversification is important. However, they will come with their own set of risks. "Traditional Vs Modern Method Of Investment Appraisal" Essays and Research Papers . Locked-In: If you invest in a traditional investment which will levy a penalty on premature withdrawal (most of the times), you may lose further capital in case you need money in an emergency. Modern Goal-Based Investing vs Traditional Goal-Based Investing September 9, 2020 by Tejas Bait Leave a Comment Goal-based investing is a powerful method that can help you against market fear and uncertainty by better managing your financial preferences. Almost all alternative investments come with the following features that distinguish them from traditional forms of investment: 1. Instead, a traditional portfolio ideology uses the individual’s income and capital goals and needs to formulate an investment strategy. By knowing what each of the asset classes are, you will be better equipped to choose the investments that best suit your needs.