Most newbie investors think that stocks are the best — and sometimes, the only — choice for investment. Generally speaking, stocks are good investment options, but not all investors will find stocks appropriate for their risk profile or investment goals.
For most people, bonds and equity (common stock) are the usual options for investment. We have already discussed these two asset classes lengthily. For a refresher course, here’s our primer on Stock Trading and Investing while here’s our tutorial on Bonds and Fixed Income.
Stocks may be “sexy” but your investment portfolio should never be composed of stocks alone. To understand why, read our article on The Importance of Diversification in Investing. Aside from stocks, other investment assets that may be included in one’s portfolio include Bonds and other fixed income instruments; Pooled investment funds such Mutual Funds, Exchange …