A New Active Bitcoin ETF for Long-term Investors
Justin Kuepper
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While a handful of Bitcoin ETFs offer exposure from within a conventional portfolio,...
Many financial advisors and brokers explain how funds work using the stewpot analogy. When you make a stew, you combine a group of ingredients into a single pot and cook them through together. Then, when you take a spoonful of stew, your spoon will be holding a small amount of each ingredient. Mutual funds work the same way. The portfolio managers purchase a basket of securities using the pooled money from the investors and then trade the securities in an effort to achieve the investment objective that is stated in the fund charter.
Be sure to read the 7 Questions to Ask When Buying a Mutual Fund
For example, a large cap value fund would buy blue-chip stocks that the management team believes are undervalued and sell them when they are perceived to become overvalued. Mutual funds rarely guarantee the investor’s principal and can produce dividends, interest, or capital gains depending on the fund.
Mutual funds also charge ongoing management fees known as 12b-1 fees that are assessed periodically. Brokers and advisors who work on commission typically sell funds with sales charges because most of the sales charge is paid to them as commission. A broker who sells ABC fund A shares that charge a 4.75% sales load will usually get paid 4 percent, with the rest going to the fund.
Mutual funds are sold by banks, insurance agents, stockbrokers, financial advisors and of course directly by the fund companies themselves. Some advisors trade no-load funds on a fee basis in an effort to provide unbiased portfolio management, where they are not incentivized to choose a fund because it will pay them a sales commission.
As mentioned previously, there are also funds that purchase a single type of security, such as junk bonds or small-cap stocks. Absolutely every type of security or sector of the market has a fund somewhere that invests solely in it (and in most cases, such as large-cap growth, there are dozens or hundreds to choose from).
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
While a handful of Bitcoin ETFs offer exposure from within a conventional portfolio,...
Justin Kuepper
|
We'll look at AllianceBernstein's recently launched funds and how they could help investors...
Aaron Levitt
|
As investors have rushed to the safety of bonds for their higher yields,...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...
Many financial advisors and brokers explain how funds work using the stewpot analogy. When you make a stew, you combine a group of ingredients into a single pot and cook them through together. Then, when you take a spoonful of stew, your spoon will be holding a small amount of each ingredient. Mutual funds work the same way. The portfolio managers purchase a basket of securities using the pooled money from the investors and then trade the securities in an effort to achieve the investment objective that is stated in the fund charter.
Be sure to read the 7 Questions to Ask When Buying a Mutual Fund
For example, a large cap value fund would buy blue-chip stocks that the management team believes are undervalued and sell them when they are perceived to become overvalued. Mutual funds rarely guarantee the investor’s principal and can produce dividends, interest, or capital gains depending on the fund.
Mutual funds also charge ongoing management fees known as 12b-1 fees that are assessed periodically. Brokers and advisors who work on commission typically sell funds with sales charges because most of the sales charge is paid to them as commission. A broker who sells ABC fund A shares that charge a 4.75% sales load will usually get paid 4 percent, with the rest going to the fund.
Mutual funds are sold by banks, insurance agents, stockbrokers, financial advisors and of course directly by the fund companies themselves. Some advisors trade no-load funds on a fee basis in an effort to provide unbiased portfolio management, where they are not incentivized to choose a fund because it will pay them a sales commission.
As mentioned previously, there are also funds that purchase a single type of security, such as junk bonds or small-cap stocks. Absolutely every type of security or sector of the market has a fund somewhere that invests solely in it (and in most cases, such as large-cap growth, there are dozens or hundreds to choose from).
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
While a handful of Bitcoin ETFs offer exposure from within a conventional portfolio,...
Justin Kuepper
|
We'll look at AllianceBernstein's recently launched funds and how they could help investors...
Aaron Levitt
|
As investors have rushed to the safety of bonds for their higher yields,...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...