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49. Better w/ My Finance-Sis, Pt 2: Funds

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Manage episode 435752449 series 3478584
Inhoud geleverd door Jessica Inskip and Jessie DeNuit, Jessica Inskip, and Jessie DeNuit. Alle podcastinhoud, inclusief afleveringen, afbeeldingen en podcastbeschrijvingen, wordt rechtstreeks geüpload en geleverd door Jessica Inskip and Jessie DeNuit, Jessica Inskip, and Jessie DeNuit of hun podcastplatformpartner. Als u denkt dat iemand uw auteursrechtelijk beschermde werk zonder uw toestemming gebruikt, kunt u het hier beschreven proces https://nl.player.fm/legal volgen.

Continuing our "Better with my Finance-Sis" Mini-Series, in part 2 we talk all about Funds! But not just the different types of investment funds, also the difference between Passive and Active Funds.

Passive Funds vs Active Funds

What is a passive fund?

Passive funds usually have lower expense ratios, with a more simplified investment strategy and less involvement of fund managers (or they can also be managed by computers).

They do still follow a benchmark and aim to deliver returns with that benchmark, and are still subject to 2 important items we need to cover called: expense ratio and tracking error.

  • Tracking Error Defined: Tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked.

  • Expense Ratio Defined: The expense ratio is how much of a fund's assets are used towards administrative and other operating expenses. Because an expense ratio reduces a fund's assets, it reduces the returns investors receive.

What is an active fund?

Active funds typically feature higher expense ratios, attributed to the fund manager's in-depth research, analysis, and management efforts.

Funds We Discuss:

  • Money Market Funds
  • Mutual Funds
  • Target Date Funds
  • ETFs - Exchange Traded Funds
  • Fixed Income Funds

✨ Follow Jacey Saige on ⁠⁠TikTok⁠⁠ and ⁠⁠Instagram⁠⁠

✨ Follow Jess Inskip on TikTok and Instagram

✨ Follow Jessie DeNuit on TikTok and Instagram

Still Have More Questions or a Comment?

🙋🏾‍♀️🙋🏻🙋🏼‍♀️🙋🏽‍♂️🙋Holla @ us on:

⁠Market MakeHer ⁠⁠website⁠⁠⁠

Get Your Free eBook: The Stock Market Explained

Subscribe to Our Newsletter

Email jessica@marketmakeherpodcast.com

Instagram⁠ ⁠⁠@marketmakeherpodcast⁠⁠⁠

TikTok⁠ ⁠⁠@marketmakeher⁠⁠⁠

X/Twitter⁠ ⁠⁠@MarketMakeHer⁠⁠⁠

Join the Money Coven⁠ ⁠⁠FB Community⁠⁠⁠

👀 Watch us in action on our⁠ ⁠⁠YouTube Channel⁠⁠⁠ 👀

About Us 🌚🌞

Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend who is a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We believe that investing is for everyone and that's why we break down complex investing topics (from "Her" perspective), show you free tools/resources on our podcast, and offer a ton of free educational content on our ⁠website⁠!

Important Disclosures:

Market MakeHer podcast is unsponsored at the time of recording. Tools and resources mentioned are for informational and educational purposes only. Remember, investing involves risk, and there's always a potential for losses when investing in securities.

Market MakeHer LLC provides educational content and resources, but we are not registered financial advisors and do not provide personalized investment advice. Consult with a licensed financial advisor before making any investment decisions.

--- Support this podcast: https://podcasters.spotify.com/pod/show/market-makeher/support
  continue reading

60 afleveringen

Artwork
iconDelen
 
Manage episode 435752449 series 3478584
Inhoud geleverd door Jessica Inskip and Jessie DeNuit, Jessica Inskip, and Jessie DeNuit. Alle podcastinhoud, inclusief afleveringen, afbeeldingen en podcastbeschrijvingen, wordt rechtstreeks geüpload en geleverd door Jessica Inskip and Jessie DeNuit, Jessica Inskip, and Jessie DeNuit of hun podcastplatformpartner. Als u denkt dat iemand uw auteursrechtelijk beschermde werk zonder uw toestemming gebruikt, kunt u het hier beschreven proces https://nl.player.fm/legal volgen.

Continuing our "Better with my Finance-Sis" Mini-Series, in part 2 we talk all about Funds! But not just the different types of investment funds, also the difference between Passive and Active Funds.

Passive Funds vs Active Funds

What is a passive fund?

Passive funds usually have lower expense ratios, with a more simplified investment strategy and less involvement of fund managers (or they can also be managed by computers).

They do still follow a benchmark and aim to deliver returns with that benchmark, and are still subject to 2 important items we need to cover called: expense ratio and tracking error.

  • Tracking Error Defined: Tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked.

  • Expense Ratio Defined: The expense ratio is how much of a fund's assets are used towards administrative and other operating expenses. Because an expense ratio reduces a fund's assets, it reduces the returns investors receive.

What is an active fund?

Active funds typically feature higher expense ratios, attributed to the fund manager's in-depth research, analysis, and management efforts.

Funds We Discuss:

  • Money Market Funds
  • Mutual Funds
  • Target Date Funds
  • ETFs - Exchange Traded Funds
  • Fixed Income Funds

✨ Follow Jacey Saige on ⁠⁠TikTok⁠⁠ and ⁠⁠Instagram⁠⁠

✨ Follow Jess Inskip on TikTok and Instagram

✨ Follow Jessie DeNuit on TikTok and Instagram

Still Have More Questions or a Comment?

🙋🏾‍♀️🙋🏻🙋🏼‍♀️🙋🏽‍♂️🙋Holla @ us on:

⁠Market MakeHer ⁠⁠website⁠⁠⁠

Get Your Free eBook: The Stock Market Explained

Subscribe to Our Newsletter

Email jessica@marketmakeherpodcast.com

Instagram⁠ ⁠⁠@marketmakeherpodcast⁠⁠⁠

TikTok⁠ ⁠⁠@marketmakeher⁠⁠⁠

X/Twitter⁠ ⁠⁠@MarketMakeHer⁠⁠⁠

Join the Money Coven⁠ ⁠⁠FB Community⁠⁠⁠

👀 Watch us in action on our⁠ ⁠⁠YouTube Channel⁠⁠⁠ 👀

About Us 🌚🌞

Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend who is a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We believe that investing is for everyone and that's why we break down complex investing topics (from "Her" perspective), show you free tools/resources on our podcast, and offer a ton of free educational content on our ⁠website⁠!

Important Disclosures:

Market MakeHer podcast is unsponsored at the time of recording. Tools and resources mentioned are for informational and educational purposes only. Remember, investing involves risk, and there's always a potential for losses when investing in securities.

Market MakeHer LLC provides educational content and resources, but we are not registered financial advisors and do not provide personalized investment advice. Consult with a licensed financial advisor before making any investment decisions.

--- Support this podcast: https://podcasters.spotify.com/pod/show/market-makeher/support
  continue reading

60 afleveringen

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