Smart Investors Diversify

Growth, Growth & Income, Aggressive Growth, International & Mutual Funds…Why?

If you listen to Dave Ramsey enough you will have heard these four asset classes mentioned when he talks about investing. Dave stresses diversifying across these four asset classes and using mutual funds to diversify across many different companies. We could not agree more. In the article below I will define each of these and then discuss a few reasons why we do this.


Mutual Funds Vs. ETFs: What's The Difference?

A key component to smart investing is ensuring that your investments are diversified. Diversifying your portfolio incorporates a variety of different asset classes to reduce the volatility of your portfolio overtime. Mutual funds and exchange-traded stocks (ETFs) both serve this purpose while having unique features that differentiate them.  Mutual funds have been around since 1924 while ETFs launched in 1993. A main component that separates the two is how they are traded. Mutual funds can only be purchased at the end of each trading day.