A mutual fund is like a bucket full of multiple different stocks, bonds, securities or a combination that you invest in collectively. When you buy into a mutual fund, you are buying into all of the securities in the fund by making one single investment. It is a great way for instant diversification. Types of Mutual Funds There are stock funds, sector funds, passively-managed, … [Read more...] about What is a Mutual Fund?
investment funds
What is an Index Fund?
An index fund is a fund that tracks an index, such as the S&P 500, the Nasdaq 100 or the Dow Jones (the 3 most popular American indexes). So what exactly is an index? What is an Index? An index is a representation of a portion of the stock market. Example: The Dow Jones Index is comprised of 30 companies, these are 30 of the largest and most influential companies in … [Read more...] about What is an Index Fund?