When exchange-traded funds (ETFs) were originated, they were basically and widely viewed as a more liquid alternative to mutual funds. Not only could investors gain the same broad diversification that they could with indexed mutual funds but, unlike mutual funds, they could also trade them during market hours. More significantly, institutional investors could use them to … [Read more...]
Passive Managememt Strategy
Passive management (also called passive investing) is a financial strategy in which a fund manager makes as few portfolio decisions as possible, in order to minimize transaction costs, including the incidence of capital gains tax. One popular method is to mimic the performance of an externally specified index—called 'index funds'. The ethos of an index fund is aptly summed up … [Read more...]
What to buy ? ETF’s or Stocks
Should You Buy Stock Or An ETF? Whether to buy the stocks or the ETF? This is one question that Investors encounter every day. Many are under the impression that if you buy an ETF, you are stuck with receiving the average return in the sector. This is not necessarily true, depending on the characteristics of the sector. Making this choice is no different from any investment … [Read more...]
Investment in E-Gold
Exchange-traded funds (ETFs) are shares of ownership in an investment which are traded in the stock market like a corporate stock. Gold ETFs allow the average investor to gain exposure to gold from the convenience of a home or office computer, without worrying about the dangers involved in the transportation and storage of physical gold. Following are the steps involved in … [Read more...]
Mutual Funds Vs. Savings
Always confused between savings and mutual funds ? Thinkin in which to invest ? i m jotting down few points of differences between the two , which may help you out in opting for either of the one . Risk Savings accounts insured institutions face no risk of loss up to the current FDIC account limits. Mutual funds are subject to substantial risk of loss correlated with … [Read more...]