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What is the difference between investing in stocks, bonds and mutual funds?
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The primary difference between investing in stocks, bonds, and mutual funds is the risk involved. Stocks and mutual funds are considered to be higher risk investments while bonds are seen as a more secure investment. Stocks and mutual funds can generate a higher return but also come with a greater risk of losing money. Bonds tend be more stable than stocks and mutual funds, and provide a fixed return, but are not as likely to generate high returns as stocks and mutual funds.