There are several types of assets that investors can choose from, each with its own risk and return profile:

Stocks (Equities): When you buy stocks, you're purchasing ownership in a company. Stocks offer the potential for high returns through price appreciation and dividends, but they also come with higher risk, as stock prices can fluctuate widely.
Bonds: Bonds are essentially loans you give to a government or corporation in exchange for periodic interest payments and the return of the principal at maturity. They are generally considered lower risk than stocks but offer lower returns. Government bonds are typically safer than corporate bond...