Understanding Investments

Investing can seem daunting, especially for beginners. However, understanding the basics can empower you to make informed decisions. Here’s a simple guide:

What is Investing?

Investing involves allocating resources, usually money, to generate income or profit. It’s essential to understand the different types of investments available.

Types of Investments

• Stocks: Shares in a company that can increase in value.
• Bonds: Loans to companies or governments that pay interest.
• Real Estate: Property investments that can provide rental income.

Risk and Return

Higher potential returns often come with higher risks. It’s crucial to assess your risk tolerance before investing.