If I want to invest in stocks, should I invest directly in individual stocks, or use equity mutual funds instead? And what factors should I consider when making my choice? The biggest factor to consider is diversification. If you invest directly in stocks, you would invest in 5, 10, maybe 20 individual stocks at most. …
Read MoreComparison: Direct Investment in Stocks vs Mutual Funds – Pros and Cons
Howdy Wall St. Willy! Sometime ago you talked to me about Index Funds and Mutual Funds, but what are some of the differences between them? Index funds are Passively Managed Funds. But when we say mutual funds, we usually refer to Actively Managed Funds. The main difference is the way they make their investments. Index …
Read MoreComparison: Index Funds vs Mutual Funds
Howdy Wall St. Willy! Sometime ago we talked about Actively Managed Funds and Passively Managed Funds. But can you tell me some of the differences between them? The main difference between actively managed funds and passively managed funds is their investment philosophy. Which means that the actively managed funds believe that getting returns better than …
Read MoreComparison: Actively Managed Funds vs Passively Managed Funds
Howdy Wall St. Willy! Sometime ago we talked about Actively Managed Fund, but what is Passively Managed Fund? Passively Managed Funds are funds in which the investment is made to mirror an index. That means that the securities in the passively managed fund are the same as in the index. The investment is also not …
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Howdy Wall St. Willy! Sometime ago, we talked about asset classes, and when we talked about that, you said something about portfolio rebalancing. But what is portfolio rebalancing anyway? Portfolio rebalancing (or portfolio re-balancing) is buying and selling securities from different asset classes to maintain the asset allocation that’s right for you. Well, when should …
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Howdy Wall St. Willy! I heard my parents talking about a Brokerage Account. But what is a brokerage account anyway? A brokerage account is an account that you use to make investments like buying or selling stocks, bonds, mutual funds, ETFs and many more. Well, where does the money to buy stocks or ETFs or …
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Howdy Wall St. Willy! In an ad on TV, I heard about an Actively Managed Fund. But what is an actively managed fund anyway? Actively managed funds are Mutual Funds in which the investment is made by a fund manager based on their judgement after looking closely at the investment options and performing a detailed …
Read MoreWhat are Actively Managed Funds or Actively Managed Mutual Fund / MF?
Howdy Wall St. Willy! Some time ago, on TV, I heard about an asset class. But what is an asset class anyway? An asset class is a group of assets in which you can invest your money. Everything within a specific asset class also shows similar traits. What do you mean by similar traits? And …
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Howdy Wall Street Willy. I have a really big question for you. What is an ETF? Well, an ETF is basically an Exchange Traded Fund, which pools money it gets from investors, and invests collectively. Do they only invest in stocks? No, they can invest in stocks, bonds, and other securities like mutual funds. Why …
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Howdy Wall Street Willy. We have talked about Mutual Funds and ETFs, but they sound very similar. Is there a difference? Yes, there are many differences. Can you tell me about them? Yes, of course. First of all, the way they are bought or sold is different. Because ETFs, just like stocks, they are bought …
Read MoreComparison: Mutual Funds vs Exchange Traded Funds (MF vs ETF)
