Investors academy

Learn more about investing

Investment Products

Would you like to know more about the products in which you can invest with us? Read all about the characteristics and risks per product category below.

Shares

Companies issue shares in order to obtain funds for activities and investments. When you buy a share in a company, you hold a part of that company's equity, making you a co-owner for the percentage represented by the shares that you own. The return, if any, on the shares consists of the increases in the share's value and any dividends.

Investment funds

An investment fund is best described as money pooled together by the participants that is then invested collectively in securities by a manager. The investments made by the fund may focus on certain asset classes, such as shares, bonds, real estate or a mix of these. Investing in an investment fund therefore helps you to diversify your investment portfolio.

Bonds

A bond is a negotiable debt instrument for a loan taken out by a government ('government bond'), an institution or a company ('corporate bond'). If a company (also known as the issuer) needs money to finance its activities or investments, it may raise that money by issuing a bond. You (the lender) are therefore actually lending money to the issuer, usually for a fixed period (the term). In exchange for this, the buyer of the bond receives an interest payment ('coupon') from the issuer. This is usually a fixed interest rate.

Special bonds

Special bonds are complex investment products with fixed interest rates. These include high-yield bonds, inflation-linked bonds, subordinated bonds, convertible bonds, perpetual bonds and asset-backed securities.

ETFs

An exchange-traded fund (ETF), also known as an index fund or index tracker, is an investment fund that can be traded at any time on the stock exchange and that aims to track the performance of an underlying instrument. An ETF usually tracks an index (such as the BEL20 or S&P500) or a basket of shares or bonds.

Structured products

Structured products are best described as investment products that invest in one or more asset classes in a complex manner (usually using an options structure). Structured products therefore also have one or more underlying assets.

Commodities

Commodities are natural resources that are grown or extracted worldwide. They play a role in all production processes and are therefore the linchpin of the world economy. Consumers and producers find each other on the commodities market, where they buy and sell.

Hedge funds

The term hedge fund does not refer to a specific asset class such as shares and bonds or to a specific investment strategy, but rather is a collective term for a wide range of alternative investment strategies. Hedge funds have a number of common features that distinguish them from 'normal', traditional investment funds. Unlike 'normal' investment funds, hedge funds use more and riskier strategies to achieve returns.

Options

An option is a derivative: a derivative financial product. The value of an option depends on the price movements of the underlying asset: the product to which it is linked, such as a share or another underlying asset such as a currency or index.

Private Equity

Private Equity is a type of investment where you invest in unlisted companies at various stages of their development. Doing so allows you to take part in companies which aren’t listed on a stock exchange, which can be a very interesting diversification to an existing investment portfolio.

Real estate

You can invest in real estate both directly and indirectly. Each has its own characteristics and risks. You invest indirectly in real estate, for example, by purchasing ETFs (trackers), real estate certificates (comparable to a bond), real estate shares or funds that invest in real estate. This page will elaborate on the indirect way of investing in real estate.

Warrants

A warrant is a customised contract. As with an option, with a relatively small amount you can earn a lot, or you run the risk of losing a lot. These are standard financial instruments that give the holder the right to buy (call warrants) or sell (put warrants) an underlying asset at a predetermined (strike) price during a certain period. They are issued by a bank or company and therefore include a credit risk.

Shares

Companies issue shares in order to obtain funds for activities and investments. When you buy a share in a company, you hold a part of that company's equity, making you a co-owner for the percentage represented by the shares that you own. The return, if any, on the shares consists of the increases in the share's value and any dividends.

Investment funds

An investment fund is best described as money pooled together by the participants that is then invested collectively in securities by a manager. The investments made by the fund may focus on certain asset classes, such as shares, bonds, real estate or a mix of these. Investing in an investment fund therefore helps you to diversify your investment portfolio.

Bonds

A bond is a negotiable debt instrument for a loan taken out by a government ('government bond'), an institution or a company ('corporate bond'). If a company (also known as the issuer) needs money to finance its activities or investments, it may raise that money by issuing a bond. You (the lender) are therefore actually lending money to the issuer, usually for a fixed period (the term). In exchange for this, the buyer of the bond receives an interest payment ('coupon') from the issuer. This is usually a fixed interest rate.

Special bonds

Special bonds are complex investment products with fixed interest rates. These include high-yield bonds, inflation-linked bonds, subordinated bonds, convertible bonds, perpetual bonds and asset-backed securities.

ETFs

An exchange-traded fund (ETF), also known as an index fund or index tracker, is an investment fund that can be traded at any time on the stock exchange and that aims to track the performance of an underlying instrument. An ETF usually tracks an index (such as the BEL20 or S&P500) or a basket of shares or bonds.

Structured products

Structured products are best described as investment products that invest in one or more asset classes in a complex manner (usually using an options structure). Structured products therefore also have one or more underlying assets.

Commodities

Commodities are natural resources that are grown or extracted worldwide. They play a role in all production processes and are therefore the linchpin of the world economy. Consumers and producers find each other on the commodities market, where they buy and sell.

Hedge funds

The term hedge fund does not refer to a specific asset class such as shares and bonds or to a specific investment strategy, but rather is a collective term for a wide range of alternative investment strategies. Hedge funds have a number of common features that distinguish them from 'normal', traditional investment funds. Unlike 'normal' investment funds, hedge funds use more and riskier strategies to achieve returns.

Options

An option is a derivative: a derivative financial product. The value of an option depends on the price movements of the underlying asset: the product to which it is linked, such as a share or another underlying asset such as a currency or index.

Private Equity

Private Equity is a type of investment where you invest in unlisted companies at various stages of their development. Doing so allows you to take part in companies which aren’t listed on a stock exchange, which can be a very interesting diversification to an existing investment portfolio.

Real estate

You can invest in real estate both directly and indirectly. Each has its own characteristics and risks. You invest indirectly in real estate, for example, by purchasing ETFs (trackers), real estate certificates (comparable to a bond), real estate shares or funds that invest in real estate. This page will elaborate on the indirect way of investing in real estate.

Warrants

A warrant is a customised contract. As with an option, with a relatively small amount you can earn a lot, or you run the risk of losing a lot. These are standard financial instruments that give the holder the right to buy (call warrants) or sell (put warrants) an underlying asset at a predetermined (strike) price during a certain period. They are issued by a bank or company and therefore include a credit risk.

ABN AMRO Private Banking

Assets require personal attention. A good Private Bank understands this and knows that every client has unique needs and wishes. At ABN AMRO Private Banking you can count on a team of experienced specialists, valuable advice and expert, tailor-made services. Our specialised Private Bankers are happy to take the time to work with you to develop an asset strategy that matches your personal objectives. Do you want to know more about our approach?

Investing involves risks

Investing can be interesting, but it also involves risks. You could lose part or all of your invested capital. That is why we recommend that you only invest money that you do not need immediately and that you always retain a buffer for unforeseen expenses. Furthermore, we advise you to only invest in investment products that you understand or with which you already have some experience. Read below about the most common risks of investing.