Knowledge

EXCHANGE-TRADED FUNDS (ETFS)
Similar to mutual funds, exchange-traded funds (ETFs) are a collection of different assets such as stocks and bonds. They typically track a market index and are designed to replicate the same return value as the index they track. ETFs are usually passively managed, meaning they don’t have a fund manager who actively picks the investments included in the fund.

The main difference between ETFs and other types of funds is how they are bought and sold. While you buy mutual fund shares directly through a fund company, ETFs are traded on the stock exchange. As such, they can be bought and sold more flexibly and their price can fluctuate throughout the day.

ANNUITIES
Some insurance companies offer investment options in the form of annuities. Annuities are a contract between an individual and an insurance company in which the company makes routine payments to the individual over a specified period of time in exchange for an initial payment. Types of annuities vary widely, with some promising a fixed payment amount and others offering a variable amount based on the value of the investment assets you choose. The duration of payments also depends on what type of annuity you buy

MUTUAL FUNDS
Mutual funds are a popular option for people who prefer to have their finances professionally managed instead of choosing their own investment products. A mutual fund is a professionally managed portfolio that pools money from investors, using that money to invest in various assets such as stocks, bonds, and short-term investments. When someone invests in a mutual fund, they don’t need to make any decisions about where their money goes; you do this for them as their investment portfolio manager.

Because investments in mutual funds are inherently diversified, this can be a less risky way of investing compared to putting all of someone’s money into a single stock or bond. Even if one asset in your fund drops in value, this represents only a small part of your share in the mutual fund.

One specialty within the financial analysis field is fund management. Fund managers work with mutual funds or hedge funds specifically, having to quickly react to market conditions and manage their investors’ portfolios prudently

BONDS
Bonds are essentially a type of loan in which you lend money to a bond issuer (the government, a municipality, a corporation, etc.) in exchange for interest payments plus the repayment of the principal balance once the bond reaches its maturity date. One of the advantages of bonds is that they can provide a reliable stream of income for clients—because they earn interest payments over time.

STOCKS
Stocks are one of the most well-known types of investment products, with about 55% of Americans invested in the stock market according to a recent poll from management consulting company Gallup. Stocks represent ownership in a publicly traded company—when you buy a share, you now own a small slice of the company’s profit.

The value of a share is dependent on that company’s success. The goal is to sell your shares for a profit when the price of the company’s stock goes up. However, if the company’s stock price goes down—possibly because the company is underperforming or going out of business—you run the risk of losing money when you sell your shares. Stocks are one of riskier types of investments, but they can result in high returns if you sell your shares at the right time. As an asset and portfolio manager, you may choose a combination of stocks for your clients and advise on their performance