Explore the multifaceted world of investment, a critical strategy for financial growth and wealth accumulation. This section delves into various asset classes,...
Investment involves allocating money or resources into assets with the expectation of generating future income or profit, typically over a period of time. It aims to grow wealth.
Common types include stocks, bonds, mutual funds, exchange-traded funds (ETFs), real estate, and commodities. Each offers different risk and return potential.
Begin by defining your financial goals, risk tolerance, and time horizon. Open a brokerage account, fund it, and consider starting with diversified, low-cost options like index funds or ETFs.
Diversification is the strategy of spreading your investments across various asset classes, industries, and geographies to minimize risk. It helps protect your portfolio from the poor performance of any single investment.