Investing in Funds

2021.04.06 11:40 am - 12:21 pm

Teaching point: What are the different types of funds and how does a brokerage fee impact your investment returns?

Do Now

What percent of financial advisors are women?

What skills do you think a financial advisor needs to have to be successful?

  • A financial advisor is responsible for more than just executing trades in the market on behalf of their clients.

  • Advisors use their expertise to construct personalized financial plans to achieve the financial goals of clients.

  • These plans include investments, savings, budget, insurance, and tax strategies.

  • Advisors further check in with their clients on a regular basis to re-evaluate their current situation and future goals and plan accordingly.


2021.04.05 Do Now

Agenda

Do Now (5 - 10 minutes)

Mutual Funds, Index Funds, ETFs and Target Date Funds (10 - 15 minutes)

Math: Active vs. Passive Funds (5 - 10 minutes)

Closure

Mutual Funds, Index Funds, ETFs and Target Date Funds

Let’s review 4 types of funds

2021.04.06 Funds Notes

Math: Active Vs. Passive Funds

It’s important to note that some funds have higher fees because they are managed by a professional called an investment manager. Let’s take a closer look at how these fees compare across different types of funds in this activity. Follow the directions on the worksheet in GC to complete the activity.


Actively managed fund: investment manager picks and chooses which companies will be in the fund

Passively managed fund: companies in a fund that automatically aligns closely with the market (for example, S&P 500)