Investing icon Investing

Make money work for you.

Learn about the differences between saving and investing, actions to take before you invest, determining your risk tolerance, and common investment strategies to achieve financial success.

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Frequently Asked Questions

Investing can help you combat Inflation, give you potential for higher returns, and help you reach your financial goals.

Saving is designed for short-term goals and needs to be easily accessible and safe. It is typically accumulated in a bank savings account or a money market deposit account. Investing helps with your long-term goals and involves taking calculated risks for the potential for higher returns.

The four main asset classes are cash, bonds, equities, and alternative investments.

A mutual fund is made up of money collected from many investors and used to purchase investments like cash, bonds, stocks, and other assets. Each fund has a specific investment objective and is managed by professional money managers to generate capital gains or income for the fund’s investors. Exchange-Traded Funds share similar traits to mutual funds, but the main difference is how they’re priced, purchased, and sold. Mutual funds are required by law to price their shares at the end of each business day and orders transact after the major U.S. exchanges close. ETF’s trade on a stock market with continuous pricing and orders transact throughout the day.

Risk is an essential component of investing and is often a tradeoff for potential return. In general, the higher the risk, the greater potential for return.

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