||A mutual fund is an investment vehicle made up of a pool of funds from many investors that buys stocks, bonds, and other securities.
||Mutual funds make it easy to diversify your portfolio and get professional management, so you don’t have to research, buy, and track every security in the fund.
||A stock represents a share in the ownership of a company, including a claim on the company’s earnings and assets. As such, stockholders are partial owners of the company.
||Stocks are fundamental to nearly every portfolio and have historically outperformed most other investments over time (past performance cannot guarantee future results).
||An ETF, or exchange-traded fund, is an investment fund or portfolio of securities that holds assets like stocks, bonds, or commodities, generally designed to track an index. Unlike mutual funds, which are bought from or redeemed by the fund company for that day’s closing net asset value (NAV), ETFs are bought and sold at market value, trading on an exchange throughout the day.
||In addition to adding diversity to your portfolio, ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
||An option is a financial derivative that represents a contract sold by one party (the option writer) to another party (the option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) until or upon a specific date (expiration date).
||Options can provide more-flexible strategies than stocks.
||Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price.
||Futures can provide a fast and cost-effective way for you to access financial and commodity markets around the clock.
||A closed-end fund (CEF), or closed-ended fund, is a pooled investment fund with a portfolio managed by an investment advisor. CEF’s issue a fixed number of shares that trade on an exchange and are not redeemable from the fund. Unlike open-end funds (i.e., mutual funds), new shares in a closed-end fund are not created by managers to meet demand from investors.
||Closed-end funds offer investors diversification along with the potential for regular income distributions.
|Bonds, CDs, and Other Fixed Income
||Fixed income investments are types of investments that seek to provide interest payments at regular intervals.
||Fixed income investments can give you a reasonably dependable income stream while also providing portfolio diversification, capital preservation, and (in some cases) potential tax benefits.
|Money Market Funds
||Money market funds invest in short-term debts that typically have low risk.
||Money market funds can offer stability of capital, liquidity, and yield.
||Investing in foreign securities.
||Global investing can provide more portfolio diversification and has the potential for investment opportunities in emerging markets around the world.