Investing can feel intimidating if you are just starting out, but the core concepts are straightforward. At its simplest, investing is putting money to work so it grows over time.
Stocks represent ownership in a company. When the company profits, the value of your shares can rise, or you may receive dividends. Stocks are higher risk but offer higher potential returns over the long term.
Bonds are loans you give to governments or corporations. They pay fixed interest and are generally safer than stocks, though returns are more modest.
ETFs (Exchange-Traded Funds) let you buy a basket of stocks or bonds in a single trade. They offer instant diversification and low fees, making them ideal for beginners. A simple S&P 500 ETF is a great starting point.