One of the most common investors ask is, “Which investment should I choose?”

If you’re a moderate risk investor, you may want to start with a diversified investment that includes stocks, bonds and cash.

Think about a moderate portfolio like a classic cocktail.

Consider the martini. Sure it’s a little on the dry side, but you can come back to it time and time again because you just can’t beat a classic, with just three ingredients.

A moderate portfolio is designed to give you broad exposure to different asset classes and geographies, according to your risk appetite. Generally speaking it will provide exposure to a broad mix of global stocks, bonds, and cash.

A diversified investment is likely to include a variety of stocks from the US, Europe and Asia. It could also include a blend of small, medium and large companies across many different industries. One common strategy is to include stocks from the S&P 500, which are the largest public companies in the US.

Stash’s Moderate Mix ETF, for example, contains both stocks and bonds. It includes a broad mix of equities, including stocks from the S&P 500, as well as companies in Europe, Asia and Australia.

It also includes four different bond funds: IUSB, CRED, IAGG, and GOVT. Bonds are one of the safest types of investment, especially when they are issued by a secure and credit worthy organization that you trust will pay you back.

It’s important to keep in mind that all investment involves risk. Past performance does not guarantee future results. There is a potential for loss as well as gain in investing.

A toast to your goals

Like your classic cocktail, investing is all about balancing different ingredients, to achieve different goals.

With investing, however, it’s more about balancing reward and risk. If you take on the risk of losing more, you generally also have a greater potential for higher returns. Stick with a lower risk investment, and you will sacrifice that potential for slower, steadier growth.

Stocks have historically been more volatile than bonds, and are generally considered to be higher risk investments.

You should choose the mix that reflects your risk profile and investment goals. Don’t stress about whether stock prices go up or down a little from one day to the next. Just keep investing, and hold on for the long term.