The advantage of investing in mutual funds is there is no need for your presence for your investment to work. You invest your money along with other investors to pay a professional manager who will do the work for you. Mutual fund makes a sound investment for those who don’t have knowledge in investing yet.
Stocks have high potential returns however it also come high risk. You can buy stocks to have some sort of ownership with the company of your choice. You may vote as a shareholder depending on the amount of your investment. It allows you to gain some profit that the company designate for shareholders or owners of stocks, this is called dividends. Before investing your money, you should do an intensive research about the company. Check their history. Also put in mind that stock value changes everyday depends on the status of the market.
This is a type of security founded on debt. As an investor, you agree to lend your money to a company or government and in return they pay you interest based on the terms of the debt. Bond is considered to be risk-free and stable however the potential return of investment is lower compared to other investment types. Bond makes a good investment to defeat inflation but still you have to study the inflation, to identify if there is a potential earning, if it’s only break even or maybe loss of value.