Asset classes, explained neutrally

Shares

A share is a slice of ownership in a company. Its value moves with the company's performance and how the market sees it. Over the long term, shares have historically had a higher average return than other asset classes, but with significant volatility in the short term.

Bonds

A bond is, in essence, a loan you make to a company or a government, in exchange for regular interest and the return of the sum at maturity. Bonds are generally less volatile than shares, but with lower potential returns in the long term.

Government securities (Fidelis, Tezaur)

Fidelis and Tezaur are programmes in which the Romanian state issues government securities directly to the public: in effect, a loan from citizens to the state, with fixed interest and a set maturity. They are public instruments, available through authorised intermediaries. They are mentioned here as an example of a category of instrument, not as a recommendation to buy.

ETFs and mutual funds

An ETF (exchange-traded fund) is a fund that holds a basket of assets (for example, hundreds of shares from a stock index) and trades on an exchange like a single share. A mutual fund is similar in principle (diversification through a single instrument), but with different trading mechanisms. Both allow instant diversification with one purchase, with costs (TER) that vary significantly between products.

Property, gold, crypto

Property offers potential income from rent plus appreciation, but with low liquidity (you can't sell a flat quickly) and high transaction and upkeep costs. Gold has historically been a store of value, with no return from dividends or interest. Cryptocurrencies are a relatively new asset class, with very high volatility and a regulatory framework that is still evolving. Any exposure deserves to be treated with a clear awareness of the risk of significant loss, including total loss.