
An introduction to investment funds and why they exist.
Attached: a worksheet for those who want to practice applying the concepts and a lesson plan for teachers who wish to incorporate these concepts into their curriculum.
Exploring what mutual funds are and how they differ from traditional stock investment.
Exploring different types of mutual funds.
Discussing various different approaches to investment.
The difference between using a fundamental analysis and a technical analysis for stock investment.
Defining what style boxes are and how they are used.
Reviewing the term market capitalization.
Discussing Index Funds and how they differ from mutual funds.
Exploring ETFs as an investment option and how they differ from index funds and mutual funds.
Explaining hedge funds and how they differ from other types of funds.
Discussing how investors use leverage to invest with borrowed money.
Why inflation means you're losing money even if you aren't spending money.
Some closing remarks.
The legendary investor Warren Buffet once stated that investment funds offer a good option for the average person to make consistent profits. Perhaps this is why so many retirement accounts invest in them. Yet, given that so few people understand how the stock market works, it goes without saying that a comparable amount of people do not comprehend how investment funds work either. Thus, our goal is to demystify the concepts behind investing in a variety of different funds and clarify what advantages they offer over individual stock investment.
This class explores: what investment funds are, the advantages and disadvantages they offer, what mutual funds are, the various different types of mutual funds; how index funds and ETFs differ from mutual funds, what hedge funds are, technical vs. fundamental analysis, different investment and management styles and what buying on margin means.
If you do not know how investment funds work, you will after this class. You'll also understand why they can be one of the safer investment opportunities available in the modern world of stock investment.
This class is a great companion piece to our course on stock investment ("Buy Hard").