Investing is the process of setting money aside, either consistently or as a lump sum, with the hope that it will increase in value over time. Below are some types of investment.


Guaranteed Investment Certificates (GICs)

- GICs are low-risk investments offered by banks and trust companies.

- When you invest in a GIC, you lend money to the bank for a fixed period and, in return, you receive a set interest rate.

- Also, your original amount invested (“principal”) will be returned at the end of the fixed period.

Mutual Funds

- A mutual fund is an investment vehicle consisting of a portfolio of stocks, bonds, or other securities, overseen by professional fund managers.

- It's an excellent option for beginners as it spreads the risk across many investments.

- You also have the option to contribute smaller dollar amounts on a regular basis to help your money grow faster.

Exchange-Traded Funds (ETFs)

- ETFs are similar to mutual funds but trade on stock exchanges, like individual stocks.

- They offer diversification and can be a cost-effective way to invest in a broad range of assets.

Stocks

- Stocks represent partial ownership in a publicly-traded company.

- When you buy a company's stock, you become a shareholder, and your wealth can grow as the company’s value increases.

- However, stocks can be riskier as their value can go up or down based on market conditions and company performance.

Bonds

- Bonds are like loans you give to companies or governments.

- In return, they pay you interest at a fixed rate over a specific period.

- Bonds are generally - but not always - considered safer than stocks but offer lower potential returns.