The greater the profit opportunities, the higher the risks. Or: The lower the investment risks, the smaller the profit opportunities.
Money market investments receive fixed interest and have a term of 12 months at most. Because they are invested for a short, defined period, fluctuations are low. If money is invested for longer than 12 months, we speak of a capital market investment.
Bonds are more risky than savings accounts but less risky than shares. By buying or subscribing to a bond, you grant a company or state a loan that is paid back after the end of the term. You receive interest in return. Bond prices may fluctuate, for example if interest rates increase, but generally do so less than share prices.
Shares provide a stake in a company and allow the shareholder to share in their success. Share prices fluctuate, depending on the company's success, but also on market developments, changes in interest rates and the economy, and political events. Successful companies pay dividends to shareholders as a profit share.
Real estate is a material asset. You can invest directly or indirectly, for instance in real estate funds or shares in real estate companies. Real estate is subject to fluctuations in value, triggered by demand and changes in interest rates in particular.
Alternative investments include investments in commodities, hedge funds or infrastructure funds, which do not belong to a traditional asset class. They are not usually very liquid and have a complex structure. Alternative investments enable you to make better use of investment opportunities and to diversify your assets more broadly.
Derivative instruments are options on underlying assets, such as shares. Their price depends on the underlying asset. With a share option, you can, for example, buy (call option) or sell (put option) a share at a specified price. Derivative instruments are complex. They are only suitable for investors who understand the mechanisms and can shoulder the risks (total loss).