Investing in Stocks & Bonds with Fifth Third Bank
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Whether you’re looking to grow your wealth or reduce your risk, stocks and bonds might be for you.
Market swings can put your hard-earned savings at risk. But a good way to reduce portfolio volatility is by investing in both assets, because bonds and stocks perform differently under similar market conditions. Get in touch with a Fifth Third Securities Investment Professional to find out if investing in these assets is right for you.
The Difference Between Bonds and Stocks
When you buy a bond, you are essentially lending money to an organization, which can be a private company, government, or municipality. When you buy a stock, you are purchasing an equity stake of the company.
Bonds can provide safety of principal, predictable income flow, and tax advantages.* The stock market is not always predictable, but there have been times when the long-term rewards of stocks have outpaced fixed-income investments, such as bonds.
Find an asset allocation strategy that’s right for you.
A Fifth Third Securities Investment Professional can help determine the right strategy based on your risk and reward preferences and investment goals.
Asset Allocation does not guarantee better performance and cannot eliminate the risk of investment loss.
Stocks tend to be more volatile than many other types of investments, but generally have provided greater return potential. Bonds are less volatile than stocks, but are impacted by changes in interest rates. Cash equivalents offer low risk and low return potential. There are risks associated with investing in small and mid cap stocks, which tend to be more volatile and less liquid than the stocks of large companies, including the risk of price fluctuations. International investing is subject to certain factors such as currency exchange-rate volatility, possible political, social or economic instability, foreign taxation, and differences in auditing and other financial standards that can involve increased risk and share-price volatility.
* Fifth Third Securities does not provide tax or legal advice. Please consult your tax advisor or attorney before making any decisions or taking any action based on this information.