Exchange Traded Funds

EXCHANGE TRADED FUNDS (ETFs) Table of Contents CHAPTER 1 sympathy Investment Strategies {text:bookmark-start} Its easy to get caught up in the hype ab appear which investment approach is better. Proponents of each conceptualise their approach is the right one, the one that has the potential to generate the sterling(prenominal) amount of return over the long term. {text:bookmark-end} The strategies apply by investors can be classified into two capacious categories: ACTIVE MANAGEMENT Active trouble might step to the foredo be described as an attempt to beat the market place as measured by a particular bench mark or index by applying human intelligence to make up ones mind good deals in the financial markets. Active management is the plethoric model for investment strategy today. Active managers try to survival of the fittest attractive stocks, bonds, mutual funds, time when to move into or out of markets or market sectors, and place leveraged bets on the future nidus of securities and markets with options, futures, and other derivatives. Their objective is to make a profit, and, often without intention, to do better than they would have done if they simply accepted sightly market returns. In pursuing their objectives, active managers search out information they believe to be valuable, and often develop confused or proprietary selection and trading systems.

Active management encompasses hundreds of methods, and includes fundamental analysis, technical analysis, and macroeconomic analysis, all having in honey oil an attempt to determine profitable future investment trends. Advantages: safe analysis â€" Money managers make informed decisions based on experience, judgement, and prevailing market trends. Possibility of higher-than-index returns â€" Managers aim to beat the movement of the index. Defensive measures â€" Managers can make changes if they believe the market may take a downturn Disadvantages: Higher fees and operating expenses. Mistakes may happen â€" there is always the... If you want to get a full essay, order it on our website: Orderessay

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