Mutual Funds & ETF’s
For first-time investors, these are a great place to start, because they own a lot of underlying stocks. Diversification reduces the risk.
Remember – these are just vehicles of investment, not the actual investment. You are still investing in companies. You’re just hiring someone to do it on your behalf, because you might not have the scale or spare time. This bank or investment company is pooling together a bunch of money from people to buy a big set of stocks or bonds from companies. You’re just buying a share of the big pool.