A term “mutual fund” has become so familiar that it is hard to imagine one’s investment portfolio without at least a single mutual fund in it. In short, a mutual fund is a form of collective investing where investors pool money into an investment fund managed by a fund manager. The fund manager then purchases securities in accordance with investment mandate and sells the fund shares to the general public. [Read more…] about Why ETFs Are Better Than Mutual Funds
How do you usually approach your investing? Do you solely focus on returns without giving due consideration to risk? Or do you put some efforts to figure out your investment objectives, preferences/constraints, and risk tolerance first? Well, if you are concerned with returns only then you are at a much higher risk than you think. Why? Because you may end up with a portfolio that is “stuffed” with high-risk investments and that is not compatible with your personality and goals. A sound investment approach should start with identifying your investment goals, understanding your risk attitude, and drafting a plan. [Read more…] about A Devastating Impact of High Fees on Your Account
Whether you choose to invest in individual stocks or stock funds, you are always presented with a dilemma: should I invest in value stocks or should I stick with growth. In fact, there is a third investment style which can simplify your investment life. It is called Blend. As the name assumes, this style combines both value and growth approaches. Investor’s portfolio holds both growth and value stocks which, in addition, enhances his diversification not only among different stocks, but within investment styles as well.