Investing is a powerful way to grow wealth, but understanding different investment types is crucial. Common investment options include stocks, bonds, mutual funds, real estate, and exchange-traded funds (ETFs). Stocks represent ownership in a company and offer high returns but come with risks. Bonds are debt securities that provide steady interest income. Mutual funds and ETFs allow diversification, reducing risks. Real estate investments generate rental income and capital appreciation. Each investment type has different risk levels, and diversifying a portfolio can balance risk and return. Understanding investments helps individuals make informed financial decisions.
Understanding Different Types of Investments
