4 Different Types Of Investments Beginners Should Know About

When beginning the journey into investments, the first step is to learn the basics of the venture. This, of course, involves financial planning, understanding risk appetite, and grasping the kind of commitment necessary. 

If you’re just starting out as an investor, here are a few different types of investments for you to learn about.  

1. Savings Accounts

As one of the simplest types of investments, a savings account is a great investment opportunity open even to non-investors. It is easy to set up, and it arguably has the lowest risk of any financial asset.

Mutual investment funds allow multiple investors to group their funds to be allocated into various assets. These funds are handled by portfolio managers who do most of the work in terms of research and decision-making. 

2. Mutual Fund

Exchange-traded funds (ETFs) work very much like mutual funds except with a bit more nuance to where the investment goes. Investors can place their money into the fund, which is used to purchase additional assets.

3. Exchange-Traded Funds

This type of asset can be seen as an introduction to intermediate-level investing. Investors can typically function independently, meaning there is no need for portfolio managers or investment pools. Instead, investors can decide exactly where their money goes. 

4. Individual Stocks On A Stock Exchange

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