This episode of the Your Recipe for Financial Success podcast was published on 25th February 2021. You can listen again by heading to our Episodes page, or on your favourite podcast player.
In this episode, Becky, Emma and Julie are tempting your taste buds with a little tipple of funds!
Episode Highlights
Here is everything you need to know about Funds, at a glance:
- What is a fund? A fund is an investment used by investors to pool their money in together with other investors. You buy the fund and the fund manager then selects the underlying shares and holdings which the fund buys and invests in
- What is a share? A share is a piece of ownership in one company
- What is a dividend? A dividend is what investors get paid out of the company profits. These can be linked to how well the company has been doing and can vary
- How many fund are there? There are lots and lots of funds to choose from! Emma did some research and found there are around 9,000 funds globally
- Who do funds invest in? Funds may have lots of different underlying holdings so unbeknown to you, you are probably investing in lots of different companies
- What are Active funds? Within Active funds, the fund manager is looking at the fund and reviewing, buying and selling holdings and actively watching the markets to try and outperform them
- What are Passive funds? Passive funds are designed to track a market index or benchmark. They are usually done by a computer algorithm with less input from the fund manager
We hope we have whet your appetite with our tipple of information on funds. Stay tuned in the coming months to learn even more about the recipe for investing, including finding out what exactly attitude to risk is and what asset allocation means.
If you would like to get your teeth into even more financial recipes, check out our other podcasts on our episodes page.
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