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Investments in a Variety of Funds – a Good Move?

by Staff Writer on Saturday, June 18, 2005

When you find an excellent investment opportunity, it might be tempting to put everything you have into that one investment. But as the old saying goes, it’s not generally a good idea to put “all your eggs in one basket.” You might get a higher return for a larger investment, but putting all your assets at risk probably isn’t the best financial move. Consider the wide array of investment opportunities out there, then start choosing those that will most likely help you achieve your goals.

Stocks are probably one of the first investments that come to mind. From those who “dabble” in the stock market to those who make their living buying and trading, stocks can be a very lucrative investment. They can also be risky and unpredictable. Buying stocks that you believe to be a secure investment is certainly a wise move, but remember the general rule of thumb when investing – low risk equals low return. Playing the stock market can also be a gamble, but one worth pursuing with good information at hand. Deciding whether stocks are a good investment depends on your goals and the overall amount of money you plan to invest.

Bonds and mutual funds are also good investment opportunities. Bonds are typically issued for a preset number of years and returns on most bonds are stable. Mutual funds depend largely on the investment goals of the overseer, but can also be a safe investment.

Other kinds of accounts, including IRAs and 401Ks, are good investments for long term goal. If you’re seeking immediate yields, you’ll likely need to look for other opportunities but many employer-based accounts carry the added incentive of employer contributions.

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Cool! That's a clever way of lkooing at it!
8 out of 11 people found this comment informative.
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