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Principles of Finance Videos 166 videos

Principles of Finance: Unit 1, Company Formation, Structure, Inception
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How is a company... born? Can it be performed via C-section? Is there a midwife present? Do its parents get in a fight over what to name it? In thi...

Principles of Finance: Unit 1, Intro: Company Formation, Structure, and Inception: Unit Intro
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Company Formation, Structure, and Inception: Unit Intro. Sorry, Leo DiCaprio fans—we're not going to be breaking down the plot of Inception. We'r...

Principles of Finance: Unit 1, Alex, That’s Finance Potpourri for $500
67 Views

Okay, so you want to be a company financial manager. It's basically up to you to make money for the shareholders. It would also be swell if you mad...

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Principles of Finance: Unit 2, Living Examples of Families of Mutual Funds 3 Views


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Description:

In the last 150 years, there have been no significant chunks of time where the stock market hasn't returned a nice profit. The more risk, the more reward.

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Transcript

00:02

Principles of Finance a la shmoop living examples of families of mutual

00:08

funds so what are a few living examples of families of mutual funds well first [Man presenting powerpoint]

00:14

you have American Funds Capital Group they're what's known as a managed fund

00:19

American funds is one of the oldest and largest of the family fund groups its

00:24

enormous but what is a family fun group yeah one who goes to Disneyland together [Family riding rollercoaster]

00:31

a family fund group however is well something different it's a collection of

00:36

hires of finance professionals who together manage money in a variety of

00:40

different generally public investment vehicles like growth funds, growth and

00:46

income funds, bond funds, muni bond funds stuff like that well a professional

00:51

analyst who is well schooled in the topic of energy and how energy monies ]Man with two arms appears]

00:57

get spent around the world well they might have some money they're

00:59

responsible for in a growth fund and other money they're responsible for in a

01:04

balance fund and an income fund and still other money they're responsible

01:08

for in a bond fund the family of funds are marketed under the same brand name

01:14

but often have the same people actually affecting the portfolio across multiple [Blind folded man throws dart into buy square]

01:19

sets of funds that's a whole family they're all kind of linked and they're

01:23

all linked with the same genetics or at least the same people behind the

01:27

various flavors of fund got it okay and each fun can be different so some funds

01:32

seek growth anywhere like go invest just go make money we don't really care how [Man stood by trees with money attached to branches]

01:37

you do it others seek a defensive posture to weather any climate and [Man in a cave and bears appear]

01:41

simply preserve capital so like in bear markets they better perform really well

01:46

we're gonna hold a lot of cash and safe bonds right? others just want a

01:51

bunch of boring government bonds nothing that just sort of sit there...

01:54

right note the fees with everything they averaged in a

01:59

bit under 1% a year okay it's a managed fund 1% a year, second we have Vanguard

02:05

which is an unmanaged fund it might be the index fund king of the world in fact [Vanguard King appears]

02:10

and one important thing to note here is that Vanguard offers both index funds

02:14

and exchange-traded funds so index funds versus ETFs you're gonna learn all about

02:20

those two there's kind of a Smackdown they're very similar so how does all

02:24

this relate to the story of bubbies famous sauce well at the end of the [Bubbie making sauce in a kitchen]

02:27

story it'll probably be a public company which means that it'll most likely be

02:31

owned in one or more of the funds you've just uncovered in this lesson...

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