Investing Basics: Stocks, Bonds, Index Funds and Diversification

Investing Basics: Stocks, Bonds, Index Funds and Diversification

Investing helps money grow over time. Understand the main asset types, risk and why diversification matters.

Investing puts money to work so it can grow faster than inflation over the long term.

Asset Types

  • Stocks – ownership in companies
  • Bonds – loans to governments or companies
  • Index funds – broad baskets of investments

Managing Risk

Diversify across assets, invest regularly and match investments to your time horizon. This is general information, not financial advice.