Some mutual funds are only available for large institutional investors, e.g., pension funds, or to high-net worth individuals through their investment advisors. Because they do not deal with the public …
Investing Blog
Different Funds and Different Investors Institutional Mutual Funds
Different Funds and Different Investors Retail Mutual Funds
As explained earlier, every mutual fund charges fees to cover expenses and transaction costs, etc. However, because the manner in which a fund charges fees can affect its price, it …
The Tricky World of Broker Commissions
Mutual funds typically do not disclose much information about commissions, yet brokers make a commission on every transaction. One significant problem with commissions is the perverse incentive it creates for …
Definition: Turnover Ratio
The Turnover Ratio is the percentage of the fund’s holdings that have been sold and replaced with other holdings during the course of the year. A fund with a higher …
Definition: Mutual Fund
A Mutual Fund is a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. These …
All Other Things Being Equal, Keep your Costs Low: Part 2
Transaction Costs Transaction costs are not included in the expense ratio, nor are they disclosed in most prospectuses. They average approximately 1.44% annually. The three most common ones are: brokerage …
All Other Things Being Equal, Keep your Costs Low: Part 1
A simple way of improving your return on investment is reducing the fees you pay while investing. This is important enough to be an Investment Rule: Reduce your costs. The …
How Do You Know Which Asset Class(es) is Right for You?
One important piece of information to share with your investment advisor is how much time you have to invest in order to achieve your goal. This is all part of …
The Risks and Benefits of Investing in Stocks
This list continues ranking assets from least risky (T-bills and bonds) to most risky (U.S. and International Value Stocks). Large Stocks: U.S. and International: Large U.S. Stocks make up a …
Bonds, Treasury Bonds
There are numerous types of investment vehicles, or assets, available to you. Assets are economic resources. Each asset class theoretically has the same overall goal—to make money over time—yet each …