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WorksheetsInvesting #4
Total questions: 10
Worksheet time: 5mins
What is compound interest?
Interest that you earn/pay on the principal over the term of the loan
Interest on interest
The annual percentage rate (APY)
Principal x Interest Rate x Term = Total Interest Paid
What is a mutual fund?
A fund whose price is based on the market price, and is sold only in full shares and can be traded throughout the day
A type of fund whose holdings match or track a particular market index.
A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.
This fund automatically rebalances your portfolio with the right mix of stocks, bonds and money market accounts as you age.
What is a index fund?
A fund whose price is based on the market price, and is sold only in full shares and can be traded throughout the day
A type of fund whose holdings match or track a particular market index.
A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.
This fund automatically rebalances your portfolio with the right mix of stocks, bonds and money market accounts as you age.
What is a target date fund?
A fund whose price is based on the market price, and is sold only in full shares and can be traded throughout the day
A type of fund whose holdings match or track a particular market index.
A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.
This fund automatically rebalances your portfolio with the right mix of stocks, bonds and money market accounts as you age.
What is an ETF (exchange traded fund)?
A fund whose price is based on the market price, and is sold only in full shares and can be traded throughout the day
A type of fund whose holdings match or track a particular market index.
A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.
This fund automatically rebalances your portfolio with the right mix of stocks, bonds and money market accounts as you age.
The practice of putting a fixed amount into an investment over a period of time, regardless of the price of that investment
Dollar cost averaging
Investing
Diversification
Trading
When it comes to the stock market, sometimes perception is more important than reality.
True
False
You should check how the stock market is doing every day and adjust your retirement funds accordingly.
True
False
How does a mutual fund differ from an index fund?
Mutual funds are passively managed while index funds are actively managed.
Mutual funds typically have lower fees than index funds.
Mutual funds group the stocks in their funds together while index funds do not.
Mutual funds are actively managed by a professional while index funds are not.
Which of the following statements about having a financial planner manage your investment portfolio is TRUE?
You don’t have a say in how you want to manage your portfolio.
Having a manager often costs less than managing the portfolio yourself.
The manager will charge fees that will decrease the profits you gain.
Financial planners are guaranteed to beat the market all the time.
