People invest in mutual funds for four fundamental reasons: professional management, diversification, convenience, and marketability. The following sections outline these benefits, which make mutual funds [more…]
In addition to stocks and bonds, you can choose from a range of traditional investment vehicles, including mutual funds, exchange-traded funds (ETFs), and annuities. Which you choose depends on your financial [more…]
The Standard & Poor’s 500 (S&P 500) tracks the 500 largest (measured by market value) publicly traded companies. The publishing firm Standard & Poor’s created this index. [more…]
In addition to the Dow Jones Industrial Average, Nasdaq, and Standard & Poor’s 500, there are other indexes you can use to track the market. They include the Russell indexes, the Wilshire 5000, Morgan [more…]
With investments based on indexes, you can invest in the general market or a particular industry. Say that you want to invest in the Dow Jones Industrial Average [more…]
Income stocks tend to be in established industries with established cash flows and less emphasis on financing or creating new products and services. When you’re ready to start your search for a great income [more…]
At first glance, an exchange-traded fund (ETF) may seem identical to a mutual fund. After all, like ETFs, mutual funds also represent baskets of stocks or bonds. The two, however, are not twins. They’re [more…]
Exchange Traded Funds (ETFs) offer a major cost advantage over mutual funds. The management companies that bring us ETFs, such as Barclays and PowerShares, can offer ETFs so cheaply compared to mutual [more…]
Variable annuities, or VAs, are mutual fund investments that have certain insurance-related guarantees, such as living benefits and death benefits. (Mutual funds are bundles of stocks or bonds or a mixture [more…]
A common way for individuals to invest in commodities is through a mutual fund. Because you’re relying on a trained professional to do the investing on your behalf, commodity mutual funds may be the simplest [more…]
Before you invest in a mutual fund, you should gather as much information as possible about the fund itself, as well as about the mechanics of investing in the fund. You can get answers to these questions [more…]
Many financial institutions are now offering commodities Exchange Traded Funds, or ETFs. This new breed of ETF enables you to buy into a fund that offers the diversification inherent in a mutual fund, [more…]