Types of Investments

Every investment works differently. Some are designed to grow your wealth over the long term. Others focus on generating income or preserving capital. Each comes with different risks, expected returns, and levels of flexibility.

Understanding how each investment works is one of the most important steps before you invest. Use this page to compare the main investment types, and then explore our detailed guides to learn more.

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Person explaining a fluctuating line graph on a laptop which is typical of the long-term movements of many types of investments.

Stocks

Bonds

Compare Investment Options at a Glance

Not every investment generates returns in the same way. Some are driven by company profits and business growth, while others pay a fixed rate of interest or track the value of a broader market. They also differ in how quickly you can access your money and how much their value typically changes over time.

Browse the options below for a quick comparison before exploring each guide in more detail.

Stocks

How Returns Are Generated

Company earnings, growth and dividends.

Liquidity

Bought or sold during market hours. Prices may fluctuate significantly.

Bonds

How Returns Are Generated

Regular interest payments and repayment of the original loan at maturity.

Liquidity

Most bonds can be sold before maturity, although their value may be higher or lower than what you paid.

Exchange-Traded Funds (ETFs)

How Returns Are Generated

The combined performance of the investments held by the fund.

Liquidity

Bought and sold on a stock exchange throughout the trading day, just like shares.

Money Market Funds

How Returns Are Generated

Interest paid by banks or other financial institutions.

Liquidity

Funds can usually be accessed quickly while maintaining a stable value.

Mutual Funds (coming soon)

How Returns Are Generated

The combined performance of a professionally managed portfolio of investments.

Liquidity

Bought or sold on dealing days, although settlement may take longer.

Cryptocurrencies (coming soon)

How Returns Are Generated

Price movements determined by supply, demand and market sentiment.

Liquidity

Trades around the clock. Prices can rise and fall sharply.

Derivatives (coming soon)

How Returns Are Generated

Changes in the price of an underlying asset, often with leverage.

Liquidity

Many contracts have expiry dates and leverage can magnify both gains and losses.

Commodities (coming soon)

How Returns Are Generated

Changes in the price of raw materials such as gold, oil and wheat.

Liquidity

Most investors gain exposure through ETFs or futures rather than owning the physical commodity.

Foreign Currencies (coming soon)

How Returns Are Generated

Changes in exchange rates between one currency and another.

Liquidity

The foreign exchange market trades 24 hours a day during the working week.

Choosing The Right Mix of Investments

No single investment is right for every goal. The right mix depends on when you’ll need the money, how much risk you’re comfortable taking, and how those investments work together in your portfolio.

If you’re investing for a goal that’s decades away, short-term declines become less important because you have time to recover.

If you’ll need the money within the next few years, protecting your capital usually matters more than pursuing higher returns.

Balance holding a big white ball and a smaller ball symbolising finding a balance in the mix of investments.

From Calculation To Action

Our calculators help you run the numbers before making a financial decision. Once you have your results, the next step is comparing real accounts, funds and platforms available in Ireland. Use these tools to move from calculation to action:

Stocks

Stocks represent ownership in a company. Learn how share prices are determined, how investors make money through growth and dividends, the risks involved, and what happens if a company performs poorly or fails.

Bonds

Bonds are loans made to governments or companies in exchange for regular interest payments. Our guide explains how bonds work, why their prices change, the risks involved, and how they differ from investing in shares.

Exchange-Traded Funds (ETFs)

ETFs let you invest in hundreds or even thousands of assets through a single investment. Learn how ETFs work, how they compare with traditional investment funds, and why they’re one of the most popular ways to build a diversified portfolio.

Money Market Funds

Money market funds invest in high-quality, short-term debt issued by governments, banks and companies. Learn how they aim to preserve capital while generating modest returns, and when they can be a useful alternative to holding cash.

FAQ

Frequently Asked Questions

Shareholders are typically last in line if a company is liquidated. Creditors and bondholders are paid first, and if no money remains, shareholders can lose their entire investment.

Most ordinary shares include voting rights on matters such as electing directors or approving major company decisions. However, individual investors typically have limited influence unless they own a significant number of shares. Certain investment apps will offer a voting option to allow you to participate in a company’s voting events.

If a bond issuer defaults, investors may lose some or all of the money they invested. Credit ratings can help assess default risk, but they are not guarantees.

No. Many companies reinvest their profits to fund future growth instead of paying dividends. Dividend payments are generally more common among mature, established businesses.

Asset allocation is the process of dividing your investments across different asset classes, such as stocks, bonds and cash. Choosing the right mix is one of the biggest factors influencing both investment risk and long-term returns.

Income investments aim to provide regular cash payments, such as dividends or bond interest. Growth investments focus on increasing in value over time, with returns typically realised when the investment is sold.