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

1. 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.
2. 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 bonds.
3. Funds: Investment funds, such as mutual funds and Exchange-Traded Funds (ETFs), pool money from many investors to buy a diversified portfolio of assets. Funds spread risk across multiple investments and can be actively or passively managed. They offer exposure to a broad range of assets in one package.
4. Real Estate: Investing in property can provide income through rent and capital appreciation over time. Real estate tends to be a stable, long-term investment, but it requires more capital upfront and is less liquid compared to stocks or bonds.
5. Commodities: These include physical assets like gold, oil, or agricultural products. Commodities are often used as a hedge against inflation but can be volatile due to supply and demand factors. Investing in commodities can be done directly (buying the physical goods) or indirectly (through commodity-based ETFs or futures).

Diversifying across these asset types helps manage risk while providing opportunities for growth.