 TITLE: Investing 101: How to Start Investing CONTENT: Select Your Investments\n-----------------------\nWhether you are investing via a retirement account or on your own, there are several types of investments to choose from.\n*   **Mutual funds**: A mutual fund is a portfolio of professionally managed investments that may include stocks, bonds and other securities. They offer a way to diversify your investments by owning small shares in a wide range of assets.\n    *   Mutual funds may vary by industry (such as all tech stocks), geography (such as all U.S. stocks), type of security (such as stocks or bonds) and risk level (such as stocks in start-up companies vs. stocks in big-name companies).\n    *   An **index fund** is a type of mutual fund that's tied to a market index, such as the Dow Jones Industrial Average or the S&P 500.\n*   **Exchange-traded funds (ETFs)**: Like an index mutual fund, an ETF is a portfolio of investments typically based around a market index. But they have some significant differences.\n    *   Like an individual stock, an ETF can be traded at any time, and its value fluctuates throughout the day. A mutual fund can be traded only at the end of the trading day, when its price is set.\n    *   Mutual funds are professionally managed; most ETFs are \"passively managed,\" meaning trades are made only to keep the fund in line with its index.\n    *   Compared with mutual funds, ETFs offer more flexibility; you can choose to trade them at any time. However, trading fees may negate the lower administrative costs of an ETF.\n*   **Individual stocks**: Each share of stock represents a percentage of ownership in a publicly traded company. Stock prices rise and fall based on the company's financial performance and market factors.\n    *   The goal is to buy stocks at a low price and sell them for a high price.\n    *   Buying individual stocks can be pricey; as of this writing, one share of Amazon stock cost over $3,000.\n*   **Bonds**: Bonds are loans to governments, corporations, municipalities or other entities that pay interest in return.\n    *   Bonds are typically purchased to balance out riskier investments in your portfolio or provide income for those nearing or in retirement.\n    *   A bond ETF or bond mutual fund can provide an affordable way to invest in diversified bonds.\n*   **REITs**: A real estate investment trust (REIT) is a company that owns and manages income-producing real estate, such as apartments, hotels or commercial office buildings.\n    *   Shares in publicly traded REITs are sold on stock exchanges and can be purchased through brokerages.\n    *   Investing in REIT mutual funds or REIT ETFs may provide greater diversification than investing in an individual REIT. END