From the course: Build Your Financial Literacy
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Mutual funds and REITs
From the course: Build Your Financial Literacy
Mutual funds and REITs
- There are many great investment products out there that you can invest in on the stock market. In this lesson, we'll look at two of the most common investment products, a mutual fund and a real estate investment trust, or a REIT. A mutual fund is a portfolio of stocks, bonds, or other securities that give you access to a diversified, professionally managed portfolio to reduce your risk at a low price. Because it's professionally managed, a mutual fund is charged an annual fee, sometimes called an expense ratio, that can reduce your overall profit. Mutual funds are a great way to invest in many different products or companies in one trade, helping you maintain a diversified portfolio and lowering your risk of losing all of your investments. They are traded once a day after the market closes. A real estate investment trust, a REIT, is a company that owns, operates, or finances income-generating real estate. Modeled…
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