Different investors have different goals. For short-term goals, like preservation of principal, use short-term investments, such as savings accounts and money market funds. With these investments, the risk of losing your money is low, but the rewards are lower as well.
There are thousands of mutual funds available to the average investor. Although it’s nice to have options, having too many choices can become overwhelming. As you consider which mutual funds may fit your needs, keep these tips in mind.
Risk is a key component to consider when making investment decisions. Taking on too much risk can expose you to extreme volatility, while too little risk may not give you the returns you want. Find out how to determine your own comfort level for accepting risks.