Exploring the Risks & Benefits of Stocks/Bonds/Mutual Funds by Nalin Patel by https://padlet.com/nalinpatel/moneymatters22 By: Nalin Patel en-us 2022-11-25 02:12:37 UTC 2026-03-22 16:55:50 UTC hello@padlet.com https://padlet.net/icons/png/1f4b0.png 1. Introduction nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398681683 Today we will discuss the possible risks and benefits associated with Stocks, Bonds and Mutual Funds. After viewing this Padlet you will better understand why people invest in these assets and the different long-term/short-term benefits of each investment. As the world continues to innovate, I believe investing is one of the keys to success. ]]> 2022-11-26 17:29:57 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398681683 Video #1 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398684161 This video does a great job of explaining what Stocks, Bonds and Mutual Funds are and how they differentiate from each other. The narrator in the video gives a breakdown of each investment and relatable examples that you can use to better understand each investment. During the video, the narrator mentioned an important statement about bonds: the length of the term being offered depends on the time your money will be tied up. 

I had chosen this video compared to the multiple other videos because of the simplicity and examples that the narrator used. Compared to the other videos I had watched, this video was short, simple, and straight to the point. Not only were the examples that were used in the video perfect to help me get a better understanding, but some visuals made it more engaging. The other videos that I watched were all boring and basic. 

]]> 2022-11-26 17:35:46 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398684161 Video #2 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398684321 Although there are a lot of benefits to investing, this video talks about the risks of investing in bonds. The narrator sits down and uses visual aids to help explain the different risks that are involved in bonds. This video is extremely important in today’s world as interest rates are still rising and inflation is going up. The value of bonds is going to drop and interest rates continue to rise. After watching the video, you can conclude that bonds have lower risks with a lower reward compared to stocks. 

I had chosen this video because it is important to learn the risks of investments, specifically bonds. I had chosen to do a specific video on the risks of bonds because bonds typically have a repertoire of a low-risk low reward system. I wanted to watch a video where it talks about the different risks involved with bonds and what may affect them. I learned a whole bunch of new things in this video, in specific how interest rates have such a big impact on the success of a bond. 

]]> 2022-11-26 17:36:09 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398684321 Video #3 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398684755 This video talks about investing in Mutual Funds and the multiple benefits they can provide. Mutual Funds are personally one of the best investments one can make because of the low risk and diversification it allows. In a mutual fund, once you purchase a share, you have a stake in one small fraction of all investments in the fund. This is a perfect investment for those who don't have a lot of knowledge in investing as it is typically managed by financial professionals. When the value of the shares goes up in value, the fund shares do the same and are calculated whenever the market closes. 

I had chosen this video because of the simplicity and visual aids the video brought to help me understand what a mutual fund is. The video was also presented by TD, a well-known bank in Canada which is also why I chose this specific video. Compared to the other videos, this video spoke about what a mutual fund is, how to invest in one, and the risks and benefits included. I think that I learned from this video that certain funds may have different objectives. Some may look for riskier stocks and some may invest in more stable companies.

]]> 2022-11-26 17:37:23 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398684755 Video #4 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398685374 Although Stocks and Bonds are typically mentioned together, they are different and this video does a great job explaining each investment. Prior to watching this video, you may have little to no information on stocks and bonds but after watching you will gain a better understanding of each investment. The video explains how a bond is a loan investment, which essentially means loaning money to a company, government or municipality. The video explains that a stock is an own investment, where an investor who purchases stock actually owns a piece of that company. The video then uses visual aids and examples to help gain a better understanding of each investment. 

I had chosen this video compared to the other videos because this was a simple and effective video that compares the differences between stocks and bonds. Although this video did not include mutual funds, I found it important to have a video that compares stocks and bonds because they are typically two investments that are put together. People typically try to determine whether they should invest in stocks or bonds, and after watching this video, I think a decision can be made. One piece of information that was useful is when the narrator was talking about bonds and how the loan agreement ends when the bond reaches its maturity. 

]]> 2022-11-26 17:38:57 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398685374 Website #1 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398685533 This article is the government of Canada’s information on investing. This website offers different topics of investment such as types of investments, Common investment terms, the risk level of investments, how taxes apply to investments and fees and costs of investments. You can select the type of investment you are interested in and gain all the necessary information once it takes you to the page of information. This website doesn’t only cover Bonds, Stocks and Mutual Funds but also ETFs, GICs, Security, T-bills, etc.

I had chosen this website compared to the others cause not only does it cover my topics for this assignment, but it also offers other investment information that can be helpful when looking to invest. This website is also brought to us by the Canadian Government, which is a commonly known source and compared to other sites has more trust. One thing that I learned from this website is different questions that I can ask myself to determine my risk level. I answered the questions on the website and it was determined that I have a low-medium risk level. ]]> 2022-11-26 17:39:18 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398685533 Website #2 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398685613 This article summarizes the key benefits of investing in stocks. Although this article only covers stocks, I found it extremely beneficial and the majority of the other videos and websites express Bonds and Mutual Funds. One of the key points stated on the website is that stocks can help build your savings, protect your pockets and maximize income from investments. The article also uses visual aids to help gain a better understanding of the benefits of investing in stocks. The article also talks about the different types of stocks and the different benefits each one presents. Not only does it use visual aids, but it uses good formatting and different types of charts/tables which make it more easier and engaging to read. 

I had chosen this website compared to the other websites because I felt it was important to determine the key benefits of investing in stocks. I felt this was the best website to do this because it offered multiple visual aids and charts/tables to display the information. One thing that I learned on this website is the number of different stocks you can invest in and the different benefits it offers. I found this interesting because although I knew there were different stocks to invest in, I can use this to benefit myself when investing in stocks. ]]> 2022-11-26 17:39:29 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398685613 Website #3 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398685897 This website summarizes how to invest in Bonds in Canada. Just like the previous website, it doesn’t talk about Mutual Fund but talks about Bonds and how to invest in them. This is important for those interested in investing because Bonds offer diversification which is beneficial for your portfolio. Depending on the bond you invest in, it will pay dividends monthly which then provides a reliable cash flow. Using reliable cash flow, you can then spend more on other investments. Bonds are typically less risky than stocks but have a lower reward. There are two ways of investing in Bonds in Canada. The first way is to purchase a bond through your brokerage account. The second way to purchase bonds is directly from the government or corporation by way of a financial broker.

I had chosen this website compared to other websites because of how it focused strictly on bonds and how to purchase them. This website walked through all aspects of investing in bonds which is extremely beneficial for those interested in investing. Compared to the other websites, this website is well formatted making it easy to read and uses visual aids to help gain a better understanding. One thing I learned from this website is that bonds are almost essential when investing. Bonds having the benefit of adding diversification to your portfolio is a major benefit to those investing. ]]> 2022-11-26 17:40:10 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398685897 Website #4 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398685933 This website summarizes the risks involved with investing in Mutual Funds. With Mutual Funds, the higher the investment is the more risk is involved. Emerging markets are a big part of Mutual Funds as they tend to have greater risks or a larger drop in value. The website lists six different risks; market risk, liquidity risk, credit risk, interest risk, country risk and currency risk. A way to asses a risk is by checking your returns on a year-to-year basis.  
I had chosen this website compared to the other websites because Mutual Funds tend to involve more risk than bonds and stocks. This website goes into great detail about the risk of Mutual Funds and all the information you should need when investing. Out of the last 3 websites, I found this website to be the most informative and beneficial. One thing that I learned from this website is what happens if a firm goes bankrupt. Mutual funds may be covered by one of two investor protection funds. You have to file a claim within 180 days after the firm declares bankruptcy.

]]> 2022-11-26 17:40:16 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398685933 Image #2 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398693644 I had chosen this image because it shows the full cycle of a Mutual Fund. Those that have never heard of a mutual fund can look at this image and get somewhat of an understanding. The image shows the beginning, middle and ending parts of investing in a mutual fund which can help a lot of beginner investors. 

I had chosen this image compared to the others because this image lets you see each step in the mutual fund cycle. A lot of the other images showed the simple process of a mutual fund, excluding the steps like "invests with securities" which is less detailed than the one I had provided. ]]> 2022-11-26 17:58:30 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398693644 Image #1 nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398693924 This image demonstrates a clear comparison of Bonds and Stocks. If you were in a situation where you wanted to invest in a stock or bond, but don't know which one you want, this image helps you get a breakdown of each. Just getting a glance at the image, you can already see that bonds have a lower risk with a lower reward and stocks have a higher risk with a higher reward. 

I had chosen this image compared to the other images because this image provided multiple differences between each investment. This image also allows you to make quick decisions if you wanted to invest in a stock or bond quickly. ]]> 2022-11-26 17:59:17 UTC https://padlet.com/nalinpatel/moneymatters22/wish/2398693924 12. Reflective Questions nalinpatel https://padlet.com/nalinpatel/moneymatters22/wish/2398698599 1. What did you learn about your topic that surprised you the most?

After exploring the different benefits and risks associated with Stocks, Bonds and Mutual Funds, I learned a lot of new things that can potentially benefit me in the future. One thing that surprised me the most while researching this topic is how beneficial and easy it is to invest in Mutual Funds. Mutual Funds not only allow you to set yourself a budget on how much you want to invest but if you don't have a lot of knowledge or experience with investing you can get someone to do the work. This surprised me the most because this can benefit multiple people, although you may have to pay for someone to invest for you, you have a professional investing your money effectively. 

2. Provide a real-life example of how this topic is relevant or interesting for you?

Relating to the point that surprised me the most, I can provide a real-life example that shows why this topic is relevant/interesting. For example, a person like myself where I have little to no experience or knowledge in investing can hire a professional to do all the investments for me. Although I am not able to understand how to invest by myself, I have a professional managing my money and don’t have to worry about changing things often. 

3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

If I could pass my knowledge to a family member or friend, I would pass on the important information about Mutual Funds. This relates to the last two reflective questions as I find it extremely beneficial to hire a professional to help invest if you don't have much knowledge of investing. I think it is important to pass this message on because it can be a potential easy passive income. I would also suggest all the information that was provided in Image #1 as it is key information that is needed when deciding to invest in bonds and stocks. Everyone had different standards and expectations, some may have more/less risk tolerance. Based on risk tolerance and other factors, family/friends will have a better understanding of what to invest in. 
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