Generally investments with greater potential returns will have greater potential risk associated with them. The risk however is reduced for investments are held for a long time. That is why short term investments should be held in low risk accounts while investments intended to be held for a long time can/should be considered for higher risk and return holdings The following shows how different types of investments compare from a risk and return perspective over a period of at least 5 years. What is right for you depends on your timeframe and your ability to stomach risk.
| Investment Type | Typical Return | Return Range | Risk |
| Interest | 3% | 1% to 4% | Zero |
| Bonds | 3% | 2% to 5% | Low |
| Bond Mutual Funds | 4% | 0% to 6% | Low |
| Balanced Mutual Funds | 6% | 0% to 10% | Medium |
| Equity Mutual Funds | 7% | -4% to 12% | Med/High |
| Exchange Traded Funds | 8% | -5% to 15% | Med/High |
| Dividend Stocks | 8% | -8% to 20% | Med/High |
| Growth Stocks | 9% | -15% to 25% | High |