Today in class we learned about small cap stock indexes, mid cap stock indexes, and large cap stock indexes. Small cap stock indexes are comprised of small companies, mid cap stock indexes are an index of middle sized companies, and large cap stock indexes are made up of large companies who are part of the S&P 500. Also cap stands for capitalization. There are also many different types of funds. Value funds find and buy cheap stocks for their fund which aren't doing very well and with low recent returns. They do this because they see potential. Growth funds usually buy stock from companies with fast growing profits. Value funds usually outperform growth funds by getting better returns. Balanced funds are basically made up of 60% stocks and 40% bonds; they also rebalance every year. Target retirement funds are similar to balanced funds except that they change over time by gradually increasing their bond percentage over time. They also invest in the US stock market, the international stock market, and the bond market. Another type of fund that exists is the commodity fund which invests in commodities such as grain, oil, gas, and gold. Real estate income trust funds own certain buildings like malls or blocks. We also learned that the cheaper the active fund, the higher the probability for it's success.
I went to Patti's blog post for November 1 and found the savings blog she found really interesting. I've always really liked websites that show DIY crafts you can do and this blog shows you how to do it affordable which is really cool. I also think it's really great that the owner of this blog is willing to share her story and tips for other people who are trying to save.
No comments:
Post a Comment