Investing

What Is Investing?

Investing means putting money into assets with the goal of earning a return, while accepting that the value can change.

4 min

Investing 101 • 01

Investing means putting money to work for a future goal.

You buy assets that may produce income, grow in value or both.

Unlike ordinary saving, investing usually involves uncertainty.

The value can rise, fall or sometimes be lost.

Common investments include

01Stocks02Bonds03Mutual funds04ETFs05GICs and other investment products

Saving and investing solve different jobs.

01

Saving

Usually emphasizes stability and access.

02

Investing

Usually accepts more uncertainty in pursuit of return.

Investing is usually connected to time.

Goal next monthLittle time to recover from a loss
Goal in 20 yearsMore time for market changes
Potential returnNot guaranteed
Starting questionWhen is the money needed?

An investment is not good simply because it can grow.

It also has to fit the goal, timeline, risk and costs.

Before investing, know

01What the money is for02When you expect to need it03How much loss you could tolerate04What you are actually buying

Remember this

Investing is a trade-off between future opportunity and uncertainty.

The goal is not to avoid all risk. It is to take risks you understand for a reason.

Lesson complete

Reviewed 2026-08-18

Sources

Financial Consumer Agency of CanadaBasics of investing ↗Ontario Securities Commission, GetSmarterAboutMoneyTypes of investments ↗
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