Investment options range from Stocks, to ETFs, Mutual Funds, Bonds. But what is the difference?
Stocks
You own part of one company.
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Higher growth potential
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More ups and downs
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Requires more attention
ETFs (Exchange-Traded Funds)
One investment that owns many stocks or bonds.
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Diversified and simple
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Lower fees, easy to buy and sell
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Popular for beginners and long-term investors
Mutual Funds
Similar to ETFs, but managed by professionals.
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Diversified
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Usually higher fees
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Often used in retirement accounts
Bonds
You lend money to a company or government.
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More stable
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Lower growth
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Provides income and balance
Quick takeaway:
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Stocks = ownership
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ETFs & mutual funds = diversified ownership
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Bonds = lending for stability