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Tag: mutual funds

Strategic financial planning – How mutual funds work

Strategic financial planning – How mutual funds work

Finance
Strategic financial planning - Mutual funds are popular, albeit often misunderstood, investment option. For the newer investor, mutual funds offer an alternative to risking precious money on a large number of different stocks or other investments. Pooling of Funds Is a Key Component Mutual fund accounts contain a wide diversity of securities, permitting individuals to join others in making smaller investments, while creating dollar pools large enough to make significant purchases of quality stocks, precious metals, bonds, or U.S. Government obligations. This pooling of money gives the fund the financial strength to make both wise and large purchases. Pooling also permits smaller or less sophisticated investors to enjoy the benefits of owning a small percentage of a wide variety o...
The Top Assets for a Defensive Wealthy Investors

The Top Assets for a Defensive Wealthy Investors

Finance
The 2008 financial crisis was a wake-up call for anyone with money in the stock market. The crash took off nearly 40% of the S&P 500’s value and everyone who had most of their money in stocks or mutual funds took a major hit to their finances. It would be years before indexes rose again to match what had been lost that year. The shakeup became a pivotal moment for high net worth investors and anyone who wasn’t content to watch their wealth disappear in the blink of an eye like that. Knowing that economies are cyclical, and the next market crash is always waiting around the corner, savvy investors started looking for alternative assets. Although prone to their own cycles and speculative bubbles, these had to be assets that operated differently than the stock market. They neede...