Home | Links | Contact Us | Bookmark
Financial Forum Search :
   Homepage      News      Financial Topics     Finance Directories      Financial Forum      Dictionary  
Financial Forum    Investing
Finance Discussion Forum

 Safest way to invest money?
...


 I want some very good day to day vocabulary words and expressions?
...


 When damn dollar will rise?
...


 EURO has been launched on 1st jan, 1999. Has it been a success ?
...


 What is the dividend?
...


 How can I get in the stock market business?
...


 If you had a $100,000 wind fall what conservative investments would you put it in for income? Conserve capital
...


 Just brought 2 bars of Gold?
I just recently brought 2 bars of gold. Now my question is If gold goes up to $800 can i sell it and make a profit?...


 What are some good short-term stocks to invest in?
...


 Pay Rise or Options? Please help?
The company I work for have offered me, 1,500 options(not sure how these work?) , or a few k a year pay rise, I know the company is being packaged ready for sale next year for arorund 60-100MM but ...


 What is difference b/w mutual fund & equity fund?
...


 I have to do a project for Math class about the stock market what are some good stocks to invest in?
Were not actually putting money in were just watching the stocks and i know nothing about stocks or the stock ...


 Should I sell my mutual funds or wait?
Since 02/27 I lost over $2000..I invested in Fidelity mutual funds: FSDAX ,FDVLX,FDCAX,FSLVX and TSVOX
I don't know what to do..should I sell my mutual funds or wait??...


 If you had....?
If you had $200k to invest, what would you do with it? would you hire a financial advisor or do your own research to buy stocks/funds/real estate etc. Is it worth to hire a financial advisor for this ...


 Whats the best way to save money and fast?
...


 What are the best stocks to buy tomorrow?
i am playing a stock market game for econ and it goes along with the real stock market and i want to know the sleepers that can earn alot of money. also if there is a websites that has good potential ...


 Banks offering the highest interest rates on a 5 year fixed deposit?
...


 Why is gold more expensive then silver when silver is more rare?
What is really odd is that the world has seven times as much refined gold as silver, yet silver is still cheap compared to gold and the silver supply is dwindling because of modern industry in ...


 What is the advantage (if any) to stocks splitting. Your source?
Please be clear and exact. No personnal opinions please....


 How do play the Stock Market?
anyone eperience pease comment and be honest !im trying to start early on learning how to make my income work for me....



sky
What is the downside of buying stocks on index?
                     
 




muncie birder
I assume you mean index funds. You have some pretty good answers already. I have a couple of extra comments in this reguard. There are maybe about 300 different index funds, so deciding which ones to buy can be an arduous task. Many folks just opt for the S&P 500. There are two downsides to this particular fund. 1. It is capitalization weighted so you do not really have so diversified a portfolio as you might first think. About 50 stocks about for about 50% of the index. The other 450 are window dressing. 2. The index is basically U S companies, but U S companies make up only about 40% of the world markets. These two failings can be mitigated by owning more than one index fund and carefully selecting the indexes so that you have proper diversification and are not stuck in a bunch of large cap slow growth companies.


Califrich
Rating
The downside is that you then will not outperform the index, as you might by selecting your own stocks. But the upside is that you will do as well as the index, something the majority of mutual fund managers cannot achieve.


HH@20
As a follow up to Muncie Birder, the Vanguard Total Stock Fund combined with the Vanguard Total International Stock Fund will give you a balanced world exposure. At some point you mifgt look at adding a REIT index and natural resources.


piet lul
indexis are a good way to invest in the market, but you will never have a high flying stock.


lmcginnis14
If you are referring to mutual funds, that are considered index funds (example: S&P 500 indexed fund), then the down side is that index funds usually performs in line with the specified index. The goal of a professionally managed mutual fund, is to out-perform the index, so you would have better potential for good returns by staying away from the indexed funds.


jim b
Rating
Jack Bogel founded the vg500 index fund, he has a website.He has many good answers to your question.


yaguru
Rating
the downside to buying stocks is ALWAYS the same. They can go down in value.


voluntarheel
Rating
The downside is you risk being average. However average is better than what most mutual funds do (and many stocks, too). And once you calculate in fees mutual funds are even worse. Honestly there is very little downside to indexing.


 Enter Your Message or Comment


User Name:  
User Email:   
Post a comment:







Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.114
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy