Investing Guides
Learn the basics of investing with our helpful guides and articles.
Investing is one of the smartest ways to build wealth over time, as well as reach financial independence. However, it can be hard to know which assets to put your hard-earned money toward, whether it be stocks, bonds, mutual funds, or real estate. For this reason, the odds can feel stacked against you if you’re a novice investor.
Our guides and articles will help you learn the basics of investing, so you can stay informed. We break down the types of assets you buy and sell, as well as how to get started.
Investing Fundamentals
What Are Dividends?
Aug 9, 2024
What Is ESG Investing?
Jan 31, 2024
Understanding Net Worth
Dec 8, 2023
Understanding the Dow Jones Industrial Average (DJIA)
Jun 28, 2024
Types of Investments
What Are Stocks?
Aug 9, 2024
What Are Bonds?
Apr 18, 2024
What Are Index Funds?
Sep 23, 2024
What Are Mutual Funds?
Sep 23, 2024
Featured Articles
What Are Investable Assets?
Jan 12, 2024
What Are Alternative Investments?
Sep 23, 2024
Capital Gains Tax: What to Know
May 31, 2024
Frequently Asked Questions
What is asset allocation?
Asset allocation is the practice of spreading your funds across various asset classes within your portfolio. By doing this, you can maintain a balance of risk mitigation and reward, as well as give yourself exposure to many different sectors and securities.
What are the different types of asset classes?
There are six main categories of asset classes to consider while investing and implementing strategies such as diversification or asset allocation. Each has unique attributes, performance trajectories, risks, and rewards. Below is a brief list of them:
- Cash and cash equivalents
- Equities
- Fixed-income assets
- Commodities
- Real estate
- Alternatives
What is portfolio diversification?
In simplest terms, diversification is a method of mitigating risk while investing. It involves building a portfolio using a mix of different asset classes, industries, regions, and sizes of companies.
On the surface, it’s a simple concept — don’t put all your money into one type of investment; however, it’s heavily nuanced and can take many forms. For this reason, it’s almost always a good idea to meet with a financial advisor or investment management professional if you’re building a complex, diverse portfolio.
What is the power of compound interest?
Compound interest can enable the value of your investments or funds to build on itself over time. This is especially effective in retirement vehicles like 401(k)s or IRAs and high-yield savings accounts with favorable interest rates. In many cases, even if you just put in an initial sum at one point, this money would grow independently because of compound interest.