Learning the basics of investing is like learning a new language. It is easy to get lost or feel overwhelmed. The good news is that once you have mastered certain investing basics, you’ll better understand how your money is being invested for your future plans. To assist you on that journey, here is a look at the handful of the most common types of investments you will encounter in your lifetime: stocks and bonds, mutual funds, and real estate.
Key Takeaways
Stocks are good investments for investors who are willing to take risks for larger gains.
Bonds are less risky than stocks, and they offer a steady stream of income.
Mutual funds automate diversification, allowing any investor to access professional portfolio-balancing strategies.
Alternative investments, like real estate, hedge funds, and family businesses, may suit an investor’s specific goals, but they come with a unique set of risks and rewards that vary widely by circumstance.
