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10 types of investments

10

Money market accounts

Money market accounts offer a greater interest rate than normal savings accounts.

9

Certificates of deposit

Certificates of deposit are a low-risk way to invest money. Banks and credit unions provide this product in which you deposit a flat sum for 6 months to 5 years.

8

Real estate investment trusts

REITs are companies that hold or finance real estate and offer an easy way to invest in property. You can acquire REIT stock, which pays dividends.

7

Options

Options provide the buyer the right to buy or sell an asset, such a stock, for a charge. You aren't required to acquire the shares, but you can.

6

Active funds

Active mutual funds are perfect if you want a hands-off approach with expert care. Active mutual funds are managed daily by a specialist.

5

Exchange-traded funds

Most ETFs track a market index, like index funds. ETFs trade like stocks and can be bought all day, but they offer mutual fund diversity.

4

Index funds

Index funds are S&P 500 or NASDAQ companies. According to experts, index funds are a low-cost way to invest in all S&P 500 companies and track the market.

3

Mutual funds

Mutual funds may contain bonds, stocks, commodities, or a combination of these. Investment managers analyze and choose investments so mutual fund investors can earn a specific rate of return.

2

Bonds

Bonds are a safe way to generate income. These are loans to local, state, or federal governments or corporations.

1

Stocks

Stock is another phrase for owning a company's ownership, which enables you to share in its earnings. These investments are riskier, but they often have greater rewards.

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