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While the SEC cannot recommend any particular investment product, a vast array of investment products exists, including stocks, mutual funds, corporate and municipal bonds, annuities, exchange-traded funds (ETFs), money market funds, and U.S. Treasury securities.
Stocks, bonds, mutual funds and ETFs are the most common asset categories. These are among the asset categories you would likely choose from when investing in a retirement savings program or a college savings plan. Other asset categories include real estate, precious metals and other commodities, and private equity. Some investors may include these asset categories within a portfolio. Investments in these asset categories typically have category-specific risks.
Before you make any investment, understand the risks of the investment and make sure the risks are appropriate for you. You’ll also want to understand the fees associated with the buying, selling, and holding the investment.