For a beginning investor, choosing the right assets is key to achieving your goals. Shares represent ownership of a company’s share and can potentially generate dividends and capital gains. Bonds are a loan instrument that provides regular income but limits capital growth.
Exchange Traded Funds (ETFs) allow you to purchase a whole set of assets at once (for example, a basket of shares of the largest companies) and significantly simplify the investment process. Real estate and precious metals are also popular among investors looking for ways to protect capital from inflation.
The task for a beginner is to understand the features of each instrument and choose the optimal balance of assets according to your preferences, level of acceptable risk and time horizon.