Equities the 3rd Big Investment Choice. The 3rd big investing choice in the public markets are equities or stocks. This continues the White Top View Series, Investment Choice. Knowing makes investing easy. For best results in equities we need to develop the knowledge and understanding to avoid and manage risks. That enables us to safely position ourselves in favorable situations with the best upside prospects.
The continuing White Top View Series, Investment Choice provides a basic survey of the many choices investors can access. The series begins with the 3 most popular investment choices, mutual funds, ETFs and equities or stocks. Additionally, 6 other investment choices include, bonds, commodities, treasuries, money market funds, foreign exchange and derivatives. Options and futures are also parts of the investment mix.
EXOTIC ETFs – Caution Aggressive Investing Can Bite! ETFs beyond the basic ones should be be regarded as exotic, sophisticated and only for informed use in special situations. They should only be used by knowledgeable and experienced investors.
Low Costs Can Double Investment Returns. At a minimum lower costs will dramatically accelerate investment returns! This continues our conversation on Exchange Traded Funds, the 2nd of the big 3 investment choices. As noted in our last discussion, the huge net cost difference between ETFs and mutual funds. Switching to ETFs offer most mutual fund holders the potential to more than double their net return!
Change to Accelerate Investment Returns. A comparable ETF with exactly the same holdings as a mutual fund can double the net returns to an investor. Potentially improved returns could be even greater than that! ETFs have a huge cost advantage over mutual funds which makes all the difference. Key point in this comparison: actual net liquidated return. That is money in the investor’s pocket after all costs. Not the progressive annual numbers as reported by some companies that can be close to nonsense. Too often the real cost of owning mutual funds are cleverly and legally obscured.
1 of 3 Big Investment Choices – Mutual Funds – The Costly Choice. Mutual Funds are pools of money contributed by many small unsophisticated investors. The funds are controlled and invested by professional managers. Financial dealers and banks create mutual funds as financial vehicles and offer numerous choices of every imaginable size. The investment focus of the fund can be on stocks, bonds or can be on other investments. Many companies offer combination funds. Every imaginable slice, dice and angle gets covered.
ETF Revolution Changes Investing History. Created two decades ago, Exchange Traded Funds or ETFs are a major innovation that began as a ripple and grew into a tidal wave. ETFs were listed on exchanges and trade like stocks. ETFs are essentially mutual funds created for the digital age. ETFs have costs, structure and fees all designed to provide investors with a very low cost alternative to mutual funds. These changes are shaking the fund business to its core with an ETF revolution changes investing history.
Change the Stock Market Constant. 1st investment choice, mutual funds, capital of investors pooled, forming a fund that bought positions or opportunities. Continuing discussing investing choices, the 1st of the big 3 investment choices. This innovation predates the US Declaration of Independence as the first mutual fund was created in 1774. Through the long history of markets there has been one constant, change.
3 Big and 6 Other Investment Choices. The 3 big investment choices are: Mutual Funds, Exchange Traded Funds and Stocks plus 6 other popular choices. This post opens a continuing White Top View Series, Investment Choice. The series provides a basic survey of the many choices investors can access. The series begins with discussions of the most popular investment choices and the less common choices. Discussion of mutual funds, ETFs and equities or stocks opens the series. Additional posts discuss 6 other investment choices include, bonds, commodities, treasuries, money market funds, foreign exchange and derivatives. Options and futures are also parts of the investment mix for discussion.