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Investing - Coggle Diagram
Investing
Passive
By positions when they have finances
Diversification
No research on investments
Lower Fees
Management Expense Ratios
Lower than .05% MER
Mimics the bench mark
Index Investing
Buy index funds
Subscribe to Efficient Market Hypothesis
Developed by Eugene Fama
stocks will trade at its intrinsic value
Invest in companies with massive growth
Active
Researched and analysis
Alpha
Value
Observe Bench Marks
Alpha Returns
Investor Irrationality
Higher Fees
Management expense Ratios
Fee above 1% MER
Need additional return for high fees
Lessons from both approaches
Lower fees
Diversify
Focus Long-Term
Watch Biases
Ramsey investment advice
Good growth stock mutual funds
Growth & Income
Aka large cap fund or blue chip fund
Large Companies
Big companies
Calmest than market
Stable
Growth aggressive
The wild crazy
Can quickly go up and decline
Small Cap fund
Start up companies
Ex. Tech Companies
Over seas company
Growth fund
In the middle
Medium Sized companies
Mid Cap Fund
Lots of funds in this area
Mutual Funds
10 Year track Record
Ones that Out perform S&P 500
Do not jump out of market
Not hard to find
Consult with Advisor on investment
Pay the high fees
Funds that outperform the market