Investment Fundamentals

Investing is the process of allocating resources, usually money, in order to generate income or profit. It is essential to understand the different types of investments available, including stocks, bonds, real estate, and mutual funds. Each type has its own risk and return profile, making it crucial for investors to assess their financial goals and risk tolerance.

Types of Investments

• Stocks: Ownership in a company.
• Bonds: Loans to governments or corporations.
• Real Estate: Property investment.
• Mutual Funds: Pooled investment vehicles.

By diversifying across these asset classes, investors can mitigate risks and enhance potential returns.