Index funds are popular investments and come highly recommended by many people. While they are generally a solid investment option, it is still important to have a prudent portfolio and process when making investment decisions for yourself. This week’s episode of Grow Money Business is all about how to select index funds. Join as we discuss decision-making when investing, what we should look for in index funds, mutual funds & ETFs, and more.
Show Notes
[05:38] Decision making – Grant shares some tips for making the best investment decisions for your portfolio.
[13:22] Active management – Grant describes how the active management process works.
[20:09] What to look for – Grant explains what we should be looking for in an index fund.
[22:30] Mutual fund vs. ETF – Grant describes the difference between a Mutual Fund and an Exchange-Traded Fund.
[30:25] Asset location – Grant shares some important notes about asset location, which is the fourth step of the portfolio in choosing an index fund.
Resources
What Are Index Funds?
investopedia.com/terms/i/indexfund.asp
Bid–ask spread
en.wikipedia.org/wiki/Bid%E2%80%93ask_spread
Asset Allocation vs. Security Selection: Their Relative Importance