The Investment Pyramid
No one can consistently predict how markets will act. Since investment types can perform differently under various market conditions, it's important for you to have a variety of investments. Known as diversification, owning different types of investments can help to reduce risk and potentially increase returns within your investment portfolio.
Your investment mix may include investments from each level of the pyramid. However, the amount of each level depends on your personal situation and level of risk tolerance.
This information has been prepared for you by the Edward Jones Investment Policy Committee.