What are the most common types of investments?

The most common types include stocks (equity), bonds (debt), mutual funds, exchange-traded funds (ETFs), real estate, and commodities like gold or oil.

How do I begin investing as a beginner?

Start by defining your financial goals, risk tolerance, and time horizon. Open a brokerage account, research suitable investment vehicles, and consider starting with diversified options like ETFs or mutual funds.

Why is diversification important in an investment portfolio?

Diversification involves spreading investments across various asset classes and industries to minimize risk. It helps protect your portfolio from significant losses if one investment performs poorly, promoting more stable returns.

What is the difference between short-term and long-term investments?

Short-term investments are held for a year or less, often for quick gains or liquidity. Long-term investments are held for more than a year, typically aiming for significant wealth accumulation through compounding over time.