A stock, also known as a share of stock, is a unit of ownership of one or more companies. A stockholder therefore becomes a partial owner of one or more companies.


Being a stockholder in a company gives you certain privileges depending on the types of shares you bought. This includes:

  • Voting rights. You may be eligible to the right to vote at the company’s annual shareholder meetings.
  • Income. The company can share part of its profit with you in the form of dividend payments.
  • Capital appreciation. The value of the shares you bought increase in value as the company’s stock price increases. 


Similarly, being a stockholder holds risks. The main risk is that a stock value is attached to a company’s performance and potential. Therefore, just as a stock price/value can be high, it can fall and lose all of its value, leaving you in deficit.


A bond is a loan provided by a buyer (you) to the issuer of the bond (usually the government or a corporation). When you buy a bond, you provide the issuer a loan which they will pay back on an agreed specific date. In the meantime, the issuer pays you periodic interest payments until the day of loan reimbursement.


  • A bond is known to be a stable and predictable investment, with a low standard deviation of return.
  • It offers a reliable and steady income stream through the periodic interest payments.
  • Certain bonds offer tax benefits.


  •  Bonds are susceptible to interest rate risks. When interest rates rise, bond prices fall, potentially causing a loss in capital for bond holders.
  • A bond comes with credit risk that the issuer fails to make interest payment or pay back the capital investment.
  • Bonds are not protected from inflation risks.

Mutual Funds

A Mutual Fund is a collective investment that consists of the money of a large number of investors, used to purchase a variety of securities such as stocks or bonds.


  • Offers a diverse portfolio with a wide variety of investment types.
  • It is managed by financial professionals reducing risks of loss.


There are few fees attached to mutual funds that directly affects its profitability:

  • Management fees are deducted from the fund whether the fund managers made a gain or a loss on a trade.
  •  Trading fees : buying and selling shares is chargeable. 

Exchange-Traded Funds (ETFs)

ETFs are joint securities that are traded on a stock exchange, throughout the day.


  • Access to many stocks across several companies.
  • Low expense ratios and fewer broker commissions.
  • Risk management through diversification.


  • Actively managed ETFs charge higher fees.
  • Single-industry-focused ETFs restrict diversification.
  • Lack of liquidity delays transactions.

Real Estate

Investing in Real estate refers to the trading and renting of properties like houses, apartments, land, and commercial buildings.


  •   Investment Potential: Property values tend to increase over time, providing potential for appreciation.
  • Steady Income: By renting out properties, you can earn a steady stream of rental income.
  •   Diversification: Real estate can diversify your investment portfolio, reducing risk.


  • Market Volatility: Property values can fluctuate due to changes in the economy, interest rates, or local market conditions.
  • Illiquidity: Real estate can be less liquid than other investments, meaning it may take time to sell a property if needed.
  •  Maintenance Costs: Properties require ongoing maintenance and repairs, which can eat into profits.


Commodities are raw materials or primary agricultural products that can be bought and sold, such as gold, oil, wheat, or coffee.


  • Hedge Against Inflation: Certain commodities, like gold and oil, tend to retain value or even appreciate during periods of inflation.
  • Liquidity: Many commodities are traded on liquid markets, allowing investors to buy and sell easily.
  • Global Demand: Commodities are influenced by global supply and demand dynamics, making them less susceptible to geopolitical events affecting specific companies or sectors.


  • Volatility: Prices of commodities can be highly volatile due to factors like supply disruptions, geopolitical tensions, and changes in demand.
  •  Storage and Transportation Costs: Physical commodities may require storage and transportation, which can add to the costs of investing.
  •  Regulatory Risks: Government regulations and policies can impact commodity prices, particularly in industries like energy and agriculture.

Certificates of Deposit (CDs)

Certificates of Deposit (CDs) are fixed-deposit long term savings accounts offered by banks and credit unions which offer fixed and higher interest rates than a regular savings account.


  • Fixed Returns: CDs offer fixed interest rates for a specified period, providing predictability and stability in returns.
  • Variety of Terms: CDs come in various terms ranging from a few months to several years, allowing you to choose the term that aligns with your financial goals and timeline.
  • No Market Risk: Unlike stocks or bonds, the value of CDs doesn’t fluctuate with market conditions, providing a sense of security during volatile market periods.


  • Liquidity: Withdrawing funds from a CD before its maturity date may result in penalties, so it’s important to consider your liquidity needs before investing.
  •  Interest Rate Risk: If interest rates rise after you’ve invested in a CD, you may miss out on higher rates available in the market.
  • Inflation Risk: The fixed interest rates offered by CDs may not keep pace with inflation, potentially eroding your purchasing power over time.

Savings Accounts

A savings account is a type of bank account where you can deposit money and earn interest on your balance. Savings accounts are commonly used for short-term financial goals, emergency funds, or as a place to save money for future expenses.


  • Liquidity: Unlike other investments like stocks or bonds, you can easily access your money in a savings account whenever you need it without facing penalties or restrictions.
  • Interest: While savings account interest rates are generally lower than other investment options, they provide a guaranteed return on your deposited funds, offering a reliable way to grow your savings over time.
  • No Market Risk: Savings accounts are not subject to market fluctuations, providing stability and peace of mind, especially during volatile market conditions.


  • Low Returns: Savings account interest rates are often lower than the rate of inflation, meaning your purchasing power may decrease over time.
  • Opportunity Cost: By keeping your money in a savings account, you may miss out on potentially higher returns available through other investments like stocks, bonds, or real estate.
  • Minimum Balance Requirements: Some savings accounts may require a minimum balance to earn interest or avoid fees, so it’s essential to understand the account terms and conditions.

Retirement Accounts

A retirement account is a specially designed means to help individuals save and invest for retirement. These accounts offer various tax advantages and incentives to encourage retirement savings.


  •   Employer Matching Contributions: Many employer-sponsored retirement plans offer matching contributions, essentially giving you free money for saving for retirement.
  • Automatic Savings: Retirement accounts often allow for automatic contributions from your pay check or bank account, making it easier to save consistently for retirement.
  • Investment Options: Retirement accounts typically offer a range of investment options, such as stocks, bonds, mutual funds, and ETFs, allowing you to diversify your portfolio based on your risk tolerance and investment goals.


  • Limited Access to Funds: Retirement accounts are intended for long-term savings, so accessing your funds before retirement age may be difficult or restricted.
  • Required Minimum Distributions (RMDs): Once you reach a certain, you are required to withdraw a minimum amount from your account each year, which could impact your tax situation and retirement income strategy.
  • Investment Restrictions: Some retirement accounts may have limited investment options or higher fees compared to other investment accounts.


Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate on decentralised networks, typically based on block-chain technology.


  • Potential for High Returns: Cryptocurrencies have shown the potential for significant price appreciation over relatively short periods, leading to substantial returns for early investors.
  • Decentralisation: Cryptocurrencies operate on decentralised networks, meaning they are not controlled by any single entity, such as a government or central bank. This decentralisation can provide greater transparency, security, and autonomy for users.
  • 24/7 Market: Unlike traditional financial markets, cryptocurrency markets operate 24/7, allowing investors to trade at any time, providing flexibility and accessibility.


  • Volatility: Cryptocurrencies are known for their extreme price volatility, with prices fluctuating wildly in short periods. This volatility can lead to significant gains but also substantial losses for investors.
  • Regulatory Uncertainty: Regulatory frameworks surrounding cryptocurrencies vary by country and are still evolving, leading to uncertainty and potential regulatory risks for investors.
  • Lack of Regulation: The lack of regulatory oversight in the cryptocurrency space can expose investors to fraudulent schemes, market manipulation, and unscrupulous practices by individuals or entities operating in the market.