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Investors can choose to buy individual stocks, like those of Apple or Google, which offers targeted exposure but also comes with higher risk. Alternatively, mutual funds and ETFs (Exchange-Traded Funds) allow investors to buy a basket of stocks, providing diversification and easier management. ETFs trade like stocks during the day, while mutual funds are often actively managed and may not trade as frequently.
Getting Started with Investing
Before jumping in, it's crucial to ask why you want to invest. Setting clear goals helps determine your risk appetite and investment horizon. The expert advises new investors to educate themselves—reading books and articles about the stock market helps build confidence and understanding.