Investment Fundamentals: A Beginner’s Guide to the U.S. Market
Starting to invest can feel confusing, especially if you are new to the U.S. market. Many people worry about picking the right investment or understanding risk. This guide explains the basics of investing, common terms, and the main options available, helping you feel more comfortable when exploring your choices. Remember, all investments carry risk and understanding them is the first step to making informed decisions.
Understanding Investment Basics
Investing means purchasing assets with the expectation that they'll increase in value over time. This means accepting some level of risk in exchange for potentially higher returns. You can have lower risk investments, which tend to yield lower returns, and you can also have higher risk investments, which tend to yield higher returns. This is different from saving, which means preserving your money's current value while prioritizing safety and immediate access.
Some key concepts for beginners:
- Risk tolerance: How much uncertainty you can handle in your investments. This helps determine an appropriate investment strategy by balancing potential gains against the risk of loss.
- Diversification: Spreading investments across different assets to reduce potential losses.
- Time horizon: How long you plan to invest. If you need that money to pay rent at the end of the month, your time horizon is short term. If you can live without that money and keep it invested over the next 20 years, your time horizon is long term.
It’s important to know that investing has no guarantees. Unlike bank accounts, most investment accounts are not FDIC insured. Inter, however, is a member of the FDIC, which means deposits in eligible bank accounts are insured up to the applicable limits. Some investment accounts are SIPC protected, which can help if a brokerage fails, but this protection does not cover market losses.
Investment Options Available in the U.S. Market
The U.S. market offers you a wide range of investment choices designed to fit different goals, time horizons, and levels of risk tolerance.
Whether you prefer to manage your own portfolio, invest through diversified funds, or keep your money in lower-risk alternatives, understanding how each type works can help you make more informed decisions.
The table below summarizes the main characteristics of the most common investment options available in the U.S. — from individual securities to more conservative alternatives.
How Inter Simplifies Your Investment Journey
Investing can sometimes feel complicated, especially when you’re just starting or exploring options in the U.S. market. Inter provides you with tools and features designed to make the process easier to understand and manage, helping you see the bigger picture of your investments and giving you access to a variety of options—all in one app.
- U.S. Stocks and ETFs: Accessible with a low minimum investment (starting at a $5 minimum and $0 fees involved).
- Easy Invest Portfolios: Expert-selected combinations of assets designed for different investment profiles, with no maintenance fees.
- Investment Options: Access to dividends, international assets, and diversified portfolios.
- Digital Experience: Track your investments, monitor progress, and manage accounts in real time through the app.
You may also be interested in: Smart Invest vs. Traditional Investing: Key Advantages Explained
Getting Started with Inter’s Investment Solutions
Before starting, it’s useful to review your financial situation:
- Available funds and debt management: Make sure investing doesn’t affect your essentials.
- Investment approach: Choose between individual securities, Smart (Easy) Invest portfolios, or a combination.
- Liquidity understanding: Some investments can be accessed quickly, while others are better for long-term plans.
- Transparent management: Our mission is to provide brokerage services in actively traded equities for free and fixed income at a low cost. If any fees are involved, they will be displayed clearly.
Conclusion
Starting to invest in the U.S. market means understanding the basics, knowing your risk tolerance, and accepting that results don’t happen overnight. Every investment requires time, learning, and regular follow-up to find what really fits your goals and preferences.
Inter helps you overcome that first barrier with helpful tools and educational resources that make investing easier to understand, focusing on transparency, simplicity, and giving you the confidence to make informed decisions over time.
Ready to start your investment journey? Explore Inter’s investment options in your super app and see which solutions match your financial goals.
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Securities brokerage services provided by Inter&Co Securities LLC (“Inter Securities”), member of FINRA/SIPC. clearing through DriveWealth, LLC and Pershing LLC. Inter Securities is a wholly owned subsidiary of Inter US Holding Inc.
Inter Securities provides United States securities brokerage services to customers of Inter Distribuidora de Títulos e Valores Mobiliários Ltda. (“Inter DTVM”), a Brazilian securities dealer authorized by the Brazilian Securities Commission and the Central Bank of Brazil. As per CVM Guidance Opinion nº 33, dated 09.30.2005, Inter Securities entered into an agreement with Inter DTVM through which Inter DTVM intermediates the services of Inter Securities to investors resident, domiciled, or incorporated in Brazil (“Brazil Investors”). The CVM jurisdiction is limited to the Brazilian territory and its supervisory power is limited to Inter DTVM. Inter DTVM’s services should not be understood as an offering of securities directed to Brazil Investors. Brokerage services for assets listed in the United States are provided exclusively through Inter Securities, without interference from Inter DTVM.
