Investing: Learn How to Build and Understand an Investment Portfolio
Learn the fundamentals of investing, explore stocks, bonds, ETFs, mutual funds, index funds, dividends, diversification, investment risk, portfolio management, and long-term investing strategies.
What Is Investing?
Investing generally means putting money or other resources into assets with the expectation that they may generate returns or increase in value over time.
Investments can include stocks, bonds, funds, real estate, businesses, and other assets. Every investment involves some level of uncertainty, and the possibility of earning a return generally comes with the possibility of losing some or all of the money invested.
Savings are generally designed for accessibility and preserving money, while investments are usually taken with a longer-term goal and may fluctuate in value.
Explore Investing Topics
Start with investing fundamentals, then explore individual investments, strategies, risks, and portfolio concepts.
Investing for Beginners
Learn the basic concepts every new investor should understand before putting money into investments.
Start investing as a beginner →Stocks
Learn what stocks are, how stock ownership works, and why stock prices can rise and fall.
Explore stocks →Bonds
Understand bonds, bond yields, interest payments, maturity, and important bond-investing concepts.
Explore bonds →ETFs
Learn how exchange-traded funds work and how they can provide exposure to groups of assets.
Explore ETFs →Mutual Funds
Understand how mutual funds pool investor money to invest in portfolios of securities or other assets.
Explore mutual funds →Index Funds
Learn how index funds seek to track the performance of a market index or benchmark.
Explore index funds →Dividend Investing
Learn what dividends are and how dividend-paying investments can fit into a portfolio.
Explore dividend investing →Value Investing
Explore the principles behind value investing and evaluating companies relative to their perceived worth.
Explore value investing →Growth Investing
Learn about investing approaches focused on companies or assets expected to experience above-average growth.
Explore growth investing →Long-Term Investing
Understand the principles of investing with a longer time horizon and managing short-term market fluctuations.
Explore long-term investing →Compound Growth
Learn how returns can potentially generate additional returns over time.
Explore compound growth →Investment Risk
Understand market risk, volatility, loss of capital, inflation risk, and other investment uncertainties.
Explore investment risk →How to Start Investing
A thoughtful investment process starts with understanding your goals, time horizon, risk tolerance, and available options.
Major Investment Types
Different investments have different characteristics, risks, costs, liquidity, and potential returns.
Stocks
Represent ownership interests in companies and can fluctuate significantly in value.
Learn about stocks →Bonds
Generally represent lending to a government, company, or other issuer under specified terms.
Learn about bonds →ETFs
Funds that trade on exchanges and can provide exposure to baskets of securities or other assets.
Learn about ETFs →Mutual Funds
Investment vehicles that pool money from multiple investors.
Learn about mutual funds →Real Estate
Explore property ownership and other ways investors may gain exposure to real estate.
Explore real estate investing →Commodities
Learn about commodities such as energy, metals, and agricultural products as investment exposures.
Explore commodities →Building an Investment Portfolio
A portfolio is a collection of investments held by an investor. Portfolio construction involves decisions about diversification, asset allocation, risk, time horizon, and investment costs.
Asset Allocation
Learn how investors divide portfolios among different asset classes.
Explore asset allocation →Diversification
Understand how spreading investments can reduce concentration in a single asset or market.
Explore diversification →Portfolio Rebalancing
Learn why investors may periodically adjust portfolios back toward target allocations.
Explore rebalancing →Investment Portfolio
Learn how different investments can be combined into a broader portfolio.
Explore portfolios →Risk Tolerance
Understand the difference between financial capacity for risk and personal comfort with investment losses.
Explore risk tolerance →Investment Time Horizon
Learn why the amount of time available for an investment goal can affect investment decisions.
Explore time horizons →Understanding Investment Returns
Investment Returns
Learn how investors measure gains and losses on investments.
Explore investment returns →Capital Gains
Understand gains that may result when an asset is sold for more than its purchase price.
Learn about capital gains →Dividend Income
Learn how some companies and funds distribute income to investors.
Explore dividend income →Compound Interest
Understand how interest can be calculated on both principal and accumulated interest in applicable financial products.
Explore compound interest →Inflation and Investing
Learn how inflation can affect the real purchasing power of investment returns.
Explore inflation and investing →Investment Fees
Understand expense ratios, commissions, account fees, spreads, and other potential investing costs.
Explore investment fees →Investing for Retirement
Long-term investing is often connected to retirement planning. Explore how investments, retirement accounts, savings, and future income can fit together.
Investing and Taxes
Tax treatment can affect investment returns. Rules vary by country, account type, investment, and individual circumstances.
Investment Taxes
Learn the general relationship between investments, taxable income, gains, and applicable taxes.
Explore investment taxes →Capital Gains Tax
Understand the general concept of taxes that may apply to investment gains.
Learn about capital gains tax →Tax-Advantaged Investing
Explore accounts and structures that may receive special tax treatment in certain jurisdictions.
Explore tax-advantaged investing →Use Investing Calculators
Explore calculators for compound growth, investment returns, inflation, savings growth, retirement projections, and other financial estimates.
Related Personal Finance Topics
Saving Money
Learn the difference between saving and investing and how both can support financial goals.
Explore saving →Financial Planning
Connect investing decisions with broader financial goals.
Explore financial planning →Retirement Planning
Learn how investing can fit into long-term retirement preparation.
Explore retirement planning →Debt Management
Understand why high-cost debt and investing decisions should be considered together.
Explore debt management →Personal Finance
Return to the main Provenzy personal finance hub.
Explore personal finance →Investing FAQs
What is investing?
Investing involves putting money into assets or activities with the expectation of generating a return or increasing value over time. Investments can also lose value.
How should a beginner start investing?
Beginners can start by learning basic investing concepts, defining financial goals, establishing an appropriate time horizon, assessing risk, understanding investment costs, and researching available investment options.
What is diversification?
Diversification is the practice of spreading investments across different assets, companies, sectors, markets, or other categories rather than concentrating everything in one investment.
Are stocks risky?
Stocks can fluctuate significantly and investors can lose money. Individual stocks can carry company-specific risks in addition to broader market risks.
What is an ETF?
An exchange-traded fund, or ETF, is an investment fund whose shares trade on an exchange. ETFs can hold different types of assets depending on the fund's strategy.
What is an index fund?
An index fund is designed to track the performance of a particular market index or benchmark, usually according to a defined investment strategy.
What is compound growth?
Compound growth occurs when returns are added to an investment and subsequent returns are generated on the accumulated amount.
Can investing guarantee profits?
No. Investments can lose value, and past performance does not guarantee future results. The potential for returns is accompanied by investment risk.
How much money do I need to start investing?
The amount required varies depending on the investment product, brokerage or platform, fees, minimum investment requirements, and applicable market rules.