What is the difference between stocksand mutual funds? Any web page that explain this clearly?
Answers: A stock is a company. For example, you can own stock in General Electric. If you buy 100 shares you own a small section of GE. When you buy a mutual fund, you are buying shares of many plentiful different companies. The mutual fund will take your money., pool it next to other people's money and buy shares in several different companies.
a mutual fund is indeed a mix of stocks. One share contained by the mutual fund is like buying profusely of little shares in respectively stock in the fund.
mutual funds are roughly considered to be lower risk than individual stocks because they are "diversified" -they don't put all their eggs contained by one basket.
a mutual fund have a manager, a guy (or girl) who picks the stocks. you compensate for his work with a charge. The fee is call the expense ratio. but most fund managers are no better at picking stocks than if you capriciously picked them. Sounds crazy but it is true in the long run. that's why responsible investors (like a state income fund) invest in "index funds", which don't hold a manager. Index funds simply follow a rule that they want to clash the average of stock market buy buying some of everything. Average may not nouns great, but over the long run in the stock open market, average is really good, and greatly low risk.
So if you are investing in the stock flea market (or bond market) always kind the core of your investments index funds, and don't invest with a company that does not present them. I would suggest Vanguard.com
Nothing to explain. A stock is 1 company. A mutual fund consists of a portfolio of stocks.
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Answers: A stock is a company. For example, you can own stock in General Electric. If you buy 100 shares you own a small section of GE. When you buy a mutual fund, you are buying shares of many plentiful different companies. The mutual fund will take your money., pool it next to other people's money and buy shares in several different companies.
a mutual fund is indeed a mix of stocks. One share contained by the mutual fund is like buying profusely of little shares in respectively stock in the fund.
mutual funds are roughly considered to be lower risk than individual stocks because they are "diversified" -they don't put all their eggs contained by one basket.
a mutual fund have a manager, a guy (or girl) who picks the stocks. you compensate for his work with a charge. The fee is call the expense ratio. but most fund managers are no better at picking stocks than if you capriciously picked them. Sounds crazy but it is true in the long run. that's why responsible investors (like a state income fund) invest in "index funds", which don't hold a manager. Index funds simply follow a rule that they want to clash the average of stock market buy buying some of everything. Average may not nouns great, but over the long run in the stock open market, average is really good, and greatly low risk.
So if you are investing in the stock flea market (or bond market) always kind the core of your investments index funds, and don't invest with a company that does not present them. I would suggest Vanguard.com
How can you narrate if a stock is cheap or expensive?
Nothing to explain. A stock is 1 company. A mutual fund consists of a portfolio of stocks.
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