Individual stocks, although I'm thinking of switching to just index funds (e.g. if dow jones index go up I earn money.) since constantly researching on companies become quite time consuming.
If you find stock trading interesting, you could also allocate a portion of your money as "play money", then leave the rest in funds.
Also, you'd probably want to go with a more broad-based index than DJIA or S&P500. Many fund companies have a "total stock market" funds where they attempt to literally buy a piece of every US stock, weighted by market cap, so you'd effectively be owning "the US stock market", rather than just large companies. There are also total international funds which do the same thing for all non-US stocks.
Also also, you should include bonds if you aren't already. Like with stocks, there are total bond market index funds for this.
In fact, if you just picked an allocation across "total stock", "total international" and "total bond" you'd pretty much be set. This is what Vanguard does for their target retirement funds: https://personal.vanguard.com/us/funds/vanguard/TargetRetire...
