Aggressive growth funds offer high risk and potentially high but volatile returns. Balanced Fund A fund investing in stocks, bonds, and money market securities. Balanced funds offer moderate risk and consistent returns.
Investment risk is low to moderate for government bonds and moderate to high for corporate bonds.
Evidence of money deposited in a financial institution for a set period of time at a specified interest rate. Your risk of losing principal with CDs issued by federally insured institutions is very low. Common Stock Securities that represent an ownership interest and give you voting rights in the issuing corporation. Your risk with common stock is moderate to high. Compound Interest Interest earned not only on your original investment, but on your accrued earnings as well.