6 Types of Investments every beginner should know

6 Types of Investments every beginner should know 1: INDIVIDUAL STOCKS Owning a small piece of a company. • Apple Inc. (AAPL) • Microsoft (MSFT) • Amazon (AMZN) • NVIDIA (NVDA) You choose the companies yourself (more control). Best if you enjoy researching businesses (earnings, news, trends) Pros: Higher returns (more money) if the company does well. Cons: Riskier because you're betting on just one company to do well + more work to stay updated → Higher risk, higher reward link in bio for my free investing guide 2: DIVIDEND STOCKS Stocks that pay you just for owning it (small %). • Coca-Cola (KO) • Johnson & Johnson (JNJ) • Procter & Gamble (PG) Paid quarterly (usually). Great for building passive income over time. It can be reinvested to compound faster Pros: Passive income while your investment grows overtime. Cons: May see slower returns (ROI) + your eggs are still in one basket → Popular for retirees+ income investors 3: ETFS (EXCHANGE TRADED FUNDS) A bundle of companies traded like a single stock. • VOO - 500 largest US companies (S&P) • SCHD - high dividend yielding stocks • VTI - Every US stock • QQQM - 100 growth/tech companies (nasdaq) You can hold 100-500+ companies in one fund. but can also track commodities or specific sectors/ You're instantly diversified. Pros: Low risk, diversified, beginner-friendly and stress free. Cons: Slower returns, more boring and less volatile → This is what most beginners start with, and smart investors stick with 4: MUTUAL FUNDS A fund where experts choose and manage investments for you. (similar to etfs) • VFIAX • VTSAX • FXAIX Actively managed (someone is trying to beat the market, or it just matches indexes). Bought through brokers, not traded all day. Pros: Hands-off and low stress as someone else does the work. Cons: Can charge high fees (choose passive ones) and often need a bigger amount to start. pro tip: invest in "passively" managed funds for less fees → You're paying for convenience 5: INDEX FUNDS A fund that specifically tracks the performance of a market index (like the S&P 500). • VOO • VTI • QQQM Outperforms most active investors long-term. Similar to ETFs but only tracks certain indexes. Pros: Low fees, diversified, long-term growth. Cons: Slower growth and not as exciting to watch. → Best for beginners + passive investors 6: TARGET DATE MUTUAL FUNDS Auto-adjusting investments for retirement. • Vanguard Target Retirement 2050 Fund • Fidelity Freedom 2060 Fund Starts aggressive → becomes safer over time. Gets safer as you get closer to retirement. Pros: Hands-off, "set and forget" retirement planning Cons: High fees, less control → Set it once, let time do the work link in bio for my free beginner investing guide! + see my entire portfolio 👁️👁️👁️