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Risk & ReturnUnlike most savings accounts, investments are not insured or guaranteed, which means your results are not predictable. While investment markets have some very good years — which in the world of investing is measured by total return — they also have years that aren't so good, and some that are bad.
Investment varietyThe investment universe is made up of a number of asset classes, or investment categories, each of which puts your money to work a little differently.
Stocks and bonds are the asset classes you're most likely to hear about. There are a number of reasons for their popularity, including:
- They are easy to buy and sell
- They're available at a wide variety of prices
- They have a history of providing positive returns — though the returns aren't guaranteed and they're not positive every year
The fund approachYou can also invest in stocks, bonds and cash by purchasing mutual funds. These funds own a pool, or collection, of investments of a particular type. Every fund indicates the type of investments it makes in the Scheme Information Document (SID) and other official documents that it provides to investors. You can buy into mutual fund units either directly from the fund management companies or after consulting your financial advisor. |
