"How To Make Your Fortune From The Greatest Investment Opportunity Since The Great Depression!"
=> http://tinyurl.com/panic2k9
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You would have learnt by now that stock markets always recover from downturns. They then eventually bounce back higher than before.
How do we take advantage of this? What's the best bet buy for the market rebound? Well, the simplest sure-win strategy is to just BUY THE MARKET. In other words, buy the index.
Well, in reality the index is not on sale. However, you can buy what is called an Exchange Traded Fund (ETF), which tracks the market index you are investing in. There are ETFs that track the Dow Jones Index, the S&P 500 Index, the Nikkei 225, the Straits Times Index and etc.
The process of buying an ETF is exactly the same as how you would buy any other stock. It is listed on the index like a stock.
However, instead of buying a share in one company, you are actually buying a basket of top stocks that make up that index. In a sense, an ETF is a vehicle constructed like a unit trust/mutual fund, but with the convenience and liquidity of a stock.
Why Buy ETFs Instead of Mutual Funds?
You may be already familiar with the concept of unit trusts (mutual funds). This is an investment scheme where a fund management company pools money from thousands of small investors. A fund manager will take all this cash and invest it in a portfolio of stocks. http://tinyurl.com/panic2k9
There are many mutual funds that are specially constructed to track the index. In such cases, the fund manager simply takes the investors' cash and invests it in the same component stocks that make up the index. This is known as an index fund. This basket of stocks concept is similar to the structure of the ETF.
However, the problem with index funds and mutual funds is that they usually have HIGHER SALES FEES from the banks, as well as management fees. On top of that, you cannot buy and sell your funds as easily as how you would for a stock.
The price of your fund is usually only quoted at the end of the day and you will have to go through a longer process of redeeming your money.
Most funds also lock the investor into a minimum period, which does not allow premature withdrawal without due penalties.
This means you have to hold on to the fund even when it is losing a considerable amount of your capital. Such contracts can range from a year to four years and longer.
You can get around all those charges and the rigidity with an ETF. It offers the flexibility of a stock, since it is listed on the stock exchange.
This means unlike unit trusts, you can buy and sell ETFs at any time. They have very low management fees, ultimately meaning higher returns for you.
To your investing success,
Profit From The Panic
http://tinyurl.com/panic2k9
=====================
Recommended Resources
=====================
Secrets Of Self-Made Millionaires
Discover the 7 Steps To Financial Success that will skyrocket you towards financial success. The complete 12 audio CD course that will cover everything you need to know about money: http://tinyurl.com/akbiz24
Patterns Of Excellence
Discover These Easy Habits That Only The TOP 1% Of Individuals In The World Use To Become Extremely Rich, Successful, And Happy In Life: http://tinyurl.com/admx38
Paving The Way To The Top
Discover The 6 Simple Steps That Pushed Me To Make My First Million in less than 5 years:
http://tinyurl.com/admk43
Secrets Of Millionaire Investors
How A Former BANKRUPT Discovered The Secret Strategies To Successful Options Trading And Now Makes Up to $22,368.60 A Month From The Comfort Of His Own Home! http://tinyurl.com/admk55
=> http://tinyurl.com/panic2k9
=======================
You would have learnt by now that stock markets always recover from downturns. They then eventually bounce back higher than before.
How do we take advantage of this? What's the best bet buy for the market rebound? Well, the simplest sure-win strategy is to just BUY THE MARKET. In other words, buy the index.
Well, in reality the index is not on sale. However, you can buy what is called an Exchange Traded Fund (ETF), which tracks the market index you are investing in. There are ETFs that track the Dow Jones Index, the S&P 500 Index, the Nikkei 225, the Straits Times Index and etc.
The process of buying an ETF is exactly the same as how you would buy any other stock. It is listed on the index like a stock.
However, instead of buying a share in one company, you are actually buying a basket of top stocks that make up that index. In a sense, an ETF is a vehicle constructed like a unit trust/mutual fund, but with the convenience and liquidity of a stock.
Why Buy ETFs Instead of Mutual Funds?
You may be already familiar with the concept of unit trusts (mutual funds). This is an investment scheme where a fund management company pools money from thousands of small investors. A fund manager will take all this cash and invest it in a portfolio of stocks. http://tinyurl.com/panic2k9
There are many mutual funds that are specially constructed to track the index. In such cases, the fund manager simply takes the investors' cash and invests it in the same component stocks that make up the index. This is known as an index fund. This basket of stocks concept is similar to the structure of the ETF.
However, the problem with index funds and mutual funds is that they usually have HIGHER SALES FEES from the banks, as well as management fees. On top of that, you cannot buy and sell your funds as easily as how you would for a stock.
The price of your fund is usually only quoted at the end of the day and you will have to go through a longer process of redeeming your money.
Most funds also lock the investor into a minimum period, which does not allow premature withdrawal without due penalties.
This means you have to hold on to the fund even when it is losing a considerable amount of your capital. Such contracts can range from a year to four years and longer.
You can get around all those charges and the rigidity with an ETF. It offers the flexibility of a stock, since it is listed on the stock exchange.
This means unlike unit trusts, you can buy and sell ETFs at any time. They have very low management fees, ultimately meaning higher returns for you.
To your investing success,
Profit From The Panic
http://tinyurl.com/panic2k9
=====================
Recommended Resources
=====================
Secrets Of Self-Made Millionaires
Discover the 7 Steps To Financial Success that will skyrocket you towards financial success. The complete 12 audio CD course that will cover everything you need to know about money: http://tinyurl.com/akbiz24
Patterns Of Excellence
Discover These Easy Habits That Only The TOP 1% Of Individuals In The World Use To Become Extremely Rich, Successful, And Happy In Life: http://tinyurl.com/admx38
Paving The Way To The Top
Discover The 6 Simple Steps That Pushed Me To Make My First Million in less than 5 years:
http://tinyurl.com/admk43
Secrets Of Millionaire Investors
How A Former BANKRUPT Discovered The Secret Strategies To Successful Options Trading And Now Makes Up to $22,368.60 A Month From The Comfort Of His Own Home! http://tinyurl.com/admk55
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