How to Get the Most Out of 10 Common Investments

Funds

Investors make money from mutual funds when the value of the securities in the fund increases.

Exchange-traded funds, or ETFs, track indices like the Standard & Poor’s 500 or the Dow Jones Industrial Average. They also can follow smaller indices associated with a particular market sector. Unlike mutual index funds, exchange-traded funds can be traded like stocks.

Funds (ETFs)

ETFs are often recommended to new investors because they are more diversified than individual stocks. And by choosing an ETF that tracks a broad index, you can further reduce your risk. You can make money from an ETF by selling it as it rises in value.

of Deposit (CDs)

Certificates of deposits are safe banking instruments available at banks and credit unions that offer higher interest rates than regular savings accounts in exchange for locking up your money for a specific period. A CD has a set term, ranging from a month to up to 10 years.

of Deposit (CDs)

CDs are good long-term investments for saving money. And they are safe. CD accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. Even so, you have to make sure you won’t need the money during the term of the CD, as there are penalties for early withdrawals.