Types of investments

Part of the investment planning process is making investment choices that fit your investment strategy. Those investments should work together to help you accomplish your financial goals. We’re dedicated to providing you a wide range of investment products and services to help you meet them. 

As an investor, you have many options. Common types of investments include: 

Stocks - An investment giving you partial ownership in a company based on the number of shares you purchase. Stocks tend to fluctuate more in the short term but may perform well over time. 

Bonds - An investment that functions as a loan to a government or institution in return for regular interest payments. Bonds can provide more stability than stocks, even though bonds have historically provided lower returns than stocks. 

Mutual funds - A fund allowing you to pool your money with others in a professionally managed portfolio. Mutual funds offer diversification through a mix of investments, such as stocks or bonds.

Exchange-traded funds (ETFs) - A basket of securities traded throughout the day — just like individual stocks — on a national stock exchange. Like mutual funds, you purchase shares of an overall fund rather than individual investments.

Annuities - A contract between you and an insurance company requiring the insurer to make payments to you, either immediately or in the future. You make contributions to the annuity for a guaranteed income stream.

Brokered certificates of deposit (CDs) - Brokered CDs are issued by banks, purchased in bulk by securities firms and sold to clients. Investors do not receive physical certificates for their brokered CDs but instead receive a periodic account statement detailing their CD holdings. Brokered CDs’ market value may fluctuate over time.   

Market Linked Investments (MLIs) -Market Linked investments are investment vehicles whose value is derived from, or based on, underlying market measures such as stocks, ETFs, and commodities. Some provide the potential to receive periodic coupons, enhanced participation, full return of deposit, buffered downside protection, or caps to upside participation. 

Alternative Investments - Alternative investments are investments other than stocks, bonds, and cash. Alternative investment strategies may deliver benefits to an overall investment portfolio through greater potential for diversification, potential for improved risk-adjusted returns, historically low or non-correlation to traditional investments, and exposure to a broader range of investment opportunities. Many alternative investments may be limited to investors that meet certain eligibility requirements.

Hedging and Monetization -The Wells Fargo Private Client Hedging and Monetization team specializes in equity risk management strategies for high-net-worth individuals and related entities. The group structures tailored strategies to meet the needs of private investors with concentrated single stock positions. The building blocks of our strategies are over-the-counter equity options, private contractual arrangements between the investor and Wells Fargo. These options are not publicly traded and can typically be structured according to the needs of each individual client.

Contact a Financial Advisor to learn more about the types of investments to consider for your portfolio.

Next steps

Understand the variety of investments available.
Talk with your Financial Advisor about investment choices.