Cash savings are the safest way to invest, but they also have the Bonds compared least chance to grow with other types of Bonds offer the potential for a regular income and tend to be lower investments risk than property and equities Equities (also known as shares) are part-ownership of a company, so you have a share in its profits. They are higher risk than property, bonds and cash, but they also offer the greatest potential for growth Where could you invest? When it comes to choosing where to invest, the option It is possible to create what’s called a ‘diversified you go for is likely to depend on how you feel about risk portfolio’, meaning an investment portfolio that is made and what you need from your investment. up of a combination of some or all of cash, equities, Cash grows only by the interest rate applied to the bonds and property. This might offer more stability savings account. However, it is the most secure home for through the ups and downs in markets and economies, your money. Up to £75,000 of your money is secure in because different types of investments tend to rise or a bank or building society through the Financial Services fall at different times and at different rates. Compensation Scheme, unlike stocks and shares or fixed interest investments, which are less secure. Bonds are generally lower risk than equities and provide a regular income, with more growth potential than cash. Property offers the combination of a stable, long-term income and potential for some capital growth through investing in ‘bricks and mortar’ assets. Equities have the potential for strong growth, but also come with the possibility for greater losses. 10