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A balanced investment portfolio would include both stocks and bonds as well as cash and mutual fund. The mix would depend on your investment objectives and tolerence for risk. If you had to pick just one investment, it would depend on how liquid you want your funds and how much risk you are willing to take. Stocks are riskier and therefore give a higher expected return in the long term. Also it is important to take into consideration your stage in life, older folks, with little income, should stay conservative and stick to bonds, while younger people can assume more risk.

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15y ago
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10y ago

Stocks are investments in individual companies. Bonds are investments in government agencies such as cities and municipalities. Stocks are generally riskier than bonds, but bonds have a lower yield.

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Why do people invest money in stocks bonds and mutual funds?

To get more money. You invest because you are seeking a return.


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The way to invest on your future mutual funds bonds stocks an index universal life if you are now 22 years old and you have just graduated college will depend on your passion and interest.


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How do mutual funds make money?

They make money by buying and selling the instruments they are designed to invest in. For ex: Equity MF's will invest in stocks, a Debt MF will invest in Bonds and other debt instruments


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through stocks, and bonds. buying land for example or even building up credit


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