Investing involves strategically allocating capital into various financial instruments with the expectation of generating income or profit. It's about growing...
Investing helps your money grow over time, potentially outpacing inflation, and is crucial for achieving long-term financial goals such as retirement, buying a home, or funding education.
Common types include stocks (ownership in companies), bonds (loans to governments or corporations), mutual funds and ETFs (diversified portfolios), real estate, and commodities.
You can start investing with relatively small amounts, often as little as $50-$100, through platforms offering fractional shares or robo-advisors.
Key risks include market volatility, potential loss of principal, inflation risk, and interest rate risk. Diversification and a long-term perspective can help mitigate these.
Diversification is the strategy of spreading investments across various asset classes, industries, and geographic regions to reduce overall risk and minimize the impact of poor performance from any single investment.