What are the types of investments?

There are various types of investments that one can make to grow their money. The most common types of investments include stocks, bonds, mutual funds, exchange-traded funds (ETFs), real estate, certificates of deposit (CDs), and savings accounts. Stocks represent ownership in a company and allow investors to gain profits through dividends and stock price increases. Bonds are loans made to companies or governments, providing a fixed income for the investor. Mutual funds and ETFs pool money from various investors to invest in a portfolio of stocks and bonds. Real estate can be rented out and provide a steady income stream. CDs and savings accounts provide low-risk, low-return investments. Understanding the different types of investments can help investors make informed decisions when building a diversified portfolio.

This mind map was published on 25 May 2023 and has been viewed 124 times.