Monday, February 25, 2013

Objectives of Stock / Equity / Index Funds

The stock market is probably one of the best option for people who want to be involved in hiqh yielding investments. Studies show that the stock market has consistently outperformed all other types of investments over the long-term. However, in a rapidly changing economic and political environment, owning an dmonitoring a portfolio of stocks are required more analysis and effort than tthe average person can handle.

The conviction to purchase a security, the patience to hold on to it as long as needed, and the wisdom to sell at the right time are qualirites that lead to success in the stock market. These qualities, however, are developed through years of experience and require abundant information and capital resources. For the common investor, these qualities can only be obtained through the services of professional fund managers or through investments in actively managed equity funds.

Growth Funds - Seek to provide long-term growth of capital by investing in growing, profitable companies.

Total Return Fund - Seek to provide long-term growth of capital and income primarily through investments in common stocks.

Value Fund - Seek long-term capital growth by investing in diversified stock portfolio of undervalued companies.

World Equity Fund (Global) - Seek long term growth of capital by investing in stocks and bonds with significant exposure to countries that have developing exonomies and markets.

Index Funds - Seek long-term capital growth by investing in a diversified portfolio of common stocks with returns similar to a specific index, such as the S&P 500.

Sector Funds - Seek to provide high growth of capital by concentrating assets in equities in one sector of the economy such as biotech, telecommunications, precious metals, etc.

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