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Welcome to my Padlet, to the world of investment. In this Padlet we are diving into the exciting worlds of stocks, bonds, and mutual funds, exploring about their risks and benefits. Whether you are new to investing or looking to enhance your skills, this is the place to explore how to grow your money and achieve financial goals. in this Padlet I will provide a clear and understandable breakdown of the risks and benefits of each kind of investment. By the end of this Padlet you will be familiar with the world of investment, you will fell more confident about making investment, and you will fully understand who unwise it is to put our money into a saving account by not knowing that our money can work just as hard as we do.

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The video does a great job explaining the basics of stocks, bonds, and mutual funds. It starts by explaining how each one works. It's a good introduction for the ones who need to learn about these types of investments. For stock, it says that it lets you to own a piece of a company, bonds are like lending money to someone in exchange for earning interest and, mutual funds combine money from lots of people to invest in a mix of asset.

I chose this video because it’s straightforward and easy to understand on what these types of investment are, speacially for the ones who does not have any info. One thing I found especially helpful was how the video compared the risk levels of stocks, bonds, and mutual funds side by side.

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Introduction to Stocks, Bonds, and Mutual Funds

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The video shows the risks and benefits of investing in stocks, bonds and mutual funds in a understandable way. It covers how stocks can bring higher returns but come with more risk, while bonds are safer but offer less returns. Mutual funds are a mix of both managed by professionals, making them a great option for beginners. The video also highlights how understanding your risk tolerance is key when deciding where to invest your money.

I chose this video because it provided a clear explanation of everything. Not every resource explains how mutual funds help diversify investments and lower overall risk, but this was one helpful tip I learned. It make people felt more assured about beginning their investing career as a result.

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Understanding Investment Options: Stocks, Bonds, Mutual Funds, ETFs, Options, and Commodities

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This video explains the pros and cons of investing in stocks, bonds, and mutual funds. This video summarizes the stock pros by stating it as a higher return and its cons as a having a very high risk. For bonds it states the pros as a stable income but the cons as a having a lower return. For mutual funds on the other hand summarizes that it combines the benefits of both by pooling money from multiple investors to diversify risk, although they come with management fees.

I chose this video because it explains investments in a way that feels relatable and not overly technical. One thing I found particularly useful was how it highlighted mutual funds diversification as a way to balance risk and reward. This point was explained more clearly here compared to other sources I’ve seen. It is a perfect video for beginners looking to start investing.

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Pros and Cons of Investing in Stocks, Bonds, and Mutual Funds

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This video explains the difference between having cash and bonds in the retirement. It expalaining pros and cons of each. It shows how bonds offer stable income with a little bit of risk when cash is safe but it losses its value because of the inflaton. This video video shows the stategy for balancing the two on how they can both work together to provide growth.

I chose this video because it clarifies a topic that can feel overwhelming especially for retirees trying to make smart financial decisions. One thing that stood out was the clear explanation of how inflation destroys cash value over time, a detail I haven’t seen explained as well in other videos.

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website #1  Why should we consider Investing?

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website #1  Why should we consider Investing?

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This website demostrates the importance of investing at any age and focuses on how investment can grow our wealth over time. It explains that investing allows our money to work harder compared to keeping it as saving. It does not matter which method of investing we go with whether its bond or stocks but the final goal is to make money. The article explains that its never to late to start investing, whether you are young, old or in any other stage of life.

I chose this website because it clearly explains the importance of investing and its benefits. One specific useful piece of information is that this website focuses on overcoming fear and starting small, which is an encouraging message for beginner.

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Investing is an important strategy at any age to build wealth and take advantage of growth and compounding.

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Website #2   What Are the Advantages of Mutual Funds?

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Website #2   What Are the Advantages of Mutual Funds?

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This website gives an in depth information about the advantages of mutual funds. It focuses both on new investors and seasoned investors. This websites explains how mutual funds leads to diversification such as spliting our invstment over different asset to reduse its risk. The site also explains that mutual funds offer liquidity and they are kind of easy to access and manage which makes them flexible choice for investors.

I chose this website because I though it would be a good piece of information for beginners who wants invest in mutual funds. The way mutual funds take advantage of economies of scale to lower the cost of individual transactions while providing access to a varied portfolio is one helpful element in this website.

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Mutual funds offer a good alternative for investors who have limited time to watch the markets' ups and downs. They are investment pools that collect money from many investors and invest it in assets like stocks, bonds, a mix of both, or other securities. They are managed by professional advisors but owned by the investors. So, many investors chip in, and a fund manager calls the shots on what investments to buy for the group.

Most American households are invested in mutual funds. Why are they so popular? Below, we explain their advantages.

Diversification

One golden rule of investing for the newest and most experienced investors alike is diversifying your assets when possible. By putting money into investments that act differently in the same economic conditions, you cut the risk to your overall portfolio. For example, buying retail and industrial stocks reduces the impact on your portfolio of a poor quarter in one of those sectors. Stocks might go down when interest rates are up, but that means your bonds are likely to pay more in interest.

Before the first publicly available mutual funds began selling shares in the mid-1970s, you needed wealth or expertise to have a portfolio of stocks from different kinds of companies across the economy, plus bonds with varying maturity dates from several issuers. By purchasing mutual funds, you get that diversification instantly.

One caveat, however, is that you might not get adequate diversification by investing in a single mutual fund. Don't put all your money in a single sector-specific or industry-specific fund. An oil and energy mutual fund might spread your money over 50 companies, but if energy prices fall, your savings will suffer. Instead, look for a fund to spread your assets among several leading industries. You'll take advantage of an increase in one of them while avoiding a big hit if one sector has a rough year.

The most popular mutual funds are life cycle or target-date funds. These offer diversification beyond one specific industry or asset type and change their holdings toward less risky and more income-producing assets as the target date approaches.

Economies of Scale

The easiest way to understand economies of scale is to consider volume discounts. In many stores, the more of a product you buy, the less it costs. A dozen doughnuts is usually cheaper per doughnut than buying three. This also occurs with securities. If you buy one share of stock, the transaction fee will be the same as if you bought 1,000 shares. That's a hefty bite out of your investment in one share but a negligible nibble out of 1,000 shares. For the fund, they also save, generally, by having less staff per investor as their size increases, which should decrease your fee.

Mutual funds use their trading volume to cut transaction costs for their investors. When you buy a mutual fund, you diversify without paying the 10 to 20 transaction fees that would give you a similarly diverse individual portfolio. And that's only the initial purchase fees. Add the transaction fees for every modification to your portfolio, and the costs go up.

Divisibility

Most people investing in mutual funds do so each paycheck through their employer's 401(k) plan. But you don't need an automatic payroll deduction to sock away a regular round sum every month. Each time you do, you get another tiny bite of many assets. Stock-pickers, by contrast, might get one or two shares of stock with an odd number of dollars left over. Or the investor can save up for many months to get one share of Chipolte Mexican Grill ( CMG).

These periodic investments in a mutual fund also allow you to take advantage of the benefits of dollar-cost averaging. This strategy cushions a portfolio from the impact of price volatility. You simply put the same amount in whatever the market is doing, which should be to your benefit over the long term.

So, rather than waiting until you have enough money to buy higher-cost investments, you can invest immediately in a mutual fund. This choice provides an additional advantage: liquidity.

An investor who is hit with a financial emergency might have to sell in a hurry. It can be disastrous if the assets have taken a hit at the wrong moment. This tends to be less of a problem with mutual funds, which swing in value less wildly because of their diversification.

Watch out for any fees associated with selling, including back-end load fees, which are percentages deducted from your total when you sell the fund. Also, unlike stocks and exchange-traded funds, mutual funds trade only once daily after the fund's net asset value is calculated.

Professional Management

When you buy a mutual fund, you also choose a professional money manager. This manager makes the decisions on how to invest your money based on extensive research and an overall strategy for making money. Only you can decide whether you are more comfortable with that than making the decisions on your own.

Convenience

Investing in a mutual fund is relatively simple, especially for those who can do so through payroll deduction. Unlike buying individual stocks or bonds, which require thorough research and figuring out the right brokerage platforms, mutual funds can be purchased directly through investment firms, financial advisors, or retirement accounts.

Another reason they are convenient is because they have low minimum investment requirements. Some mutual funds let investors buy in with no minimum at all (especially if it's done through your employer), and this means that even $5, $10, or $100 can get you invested. Thus, you can start investing with a smaller amount of money compared with buying individual stocks, which can cost significantly more per share. This flexibility is ideal for new investors who are just starting out or those who want to invest a smaller part of their savings regularly.

Employer Matching

About 65% of those invested in mutual funds do so through their employer. This provides more than just dollar-cost averaging through payroll deductions. Most employers offer some form of matching, from $0.50 to $1.00 for every buck you put in your 401(k). Not saving this way, then, leaves this money on the table, Peter Lazaroff, financial advisor and chief investment officer at Plancorp, told us.

He noted it's risk-free money-the match can double your stake before you get any returns from the mutual fund investment. Lazaroff suggests you try to max out on whatever match your employer provides. "You can still chip away at debt and put away small amounts in an emergency fund if necessary. But securing that employer match is crucial," he said.

Fidelity reports that more than four out of five of those coming to them through their employers receive some form of matching. Vanguard says it's even higher for its plans, with about 95% of employers matching their employees and almost half providing non-matching funds-a certain amount of money whatever you put in.

The point is that it's worth checking how to maximize your investment by contributing the most you can while your employer matches you. The median match, by the way, is up to 4.5% of your salary.

What Are the Risks of Mutual Funds?

Can I Easily Sell My Shares In a Mutual Fund if I Need the Money?

Since Mutual Funds Are Professionally Managed, Can I expect Them To Outperform the Market?

The Bottom Line

If you decide to forego stock-picking and go with a mutual fund, you still have one last investment decision to make: which fund to buy. There are almost 3,000 of them.

Mutual funds offer several advantages, making them the most popular choice among mainstream American investors. One of the primary benefits is diversification, which reduces the risk of loss by spreading investments across a wide range of assets.

Mutual funds also provide professional management, allowing you to leverage the expertise of fund managers who make investment decisions based on their research and analysis. Additionally, mutual funds offer convenience and accessibility. Another advantage is liquidity, as investors can typically buy and sell shares of mutual funds relatively quickly. This flexibility helps you tailor your approach to meet your financial goals.

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What Are the Advantages of Mutual Funds?

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Mutual funds offer individual investors diversification, liquidity, and professional money management. Here's why these are important.

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Website #3  12 Safe Stocks to Buy For Long-Term

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Website #3  12 Safe Stocks to Buy For Long-Term

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This website discusses about the 12 safe stocks to buy for long term, explains their stability and good performance. It also explains that how investing in dependable companies can help us reduce the risk of market volatility. These 12 stock chosen by this website is based on stablished companies such us Walmart and Oracle. The website also emphasizes the long term investment during uncertain economic situations and explains why these stocks are considered safe.

I chose this website because it gives practical guide on choosing reliable long term investment which is valuable for both beginner and and experienced investors. One useful piece of information was the importance of analyzing hedge fund sentiment because it goes beyond general advice and provides a specific method to assess stock safety.

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Stanley Druckenmiller wowed investors year after year with his winning streak at the helm of Duquesne Capital Management. There, he scored an average annual return of 30% over 30 years -- and didn't post a single year of money losses. This top investor closed the fund in 2010 but has since continued investing through the Duquesne Family Office -- and one of his favored stocks in recent times has been artificial intelligence (AI) giant Nvidia (NASDAQ: NVDA).

Druckenmiller bought shares of the AI chip leader in the fourth quarter of 2022, as the AI boom picked up momentum. Since that time, through the beginning of this year, they gained 400%. Earlier this year, this star investor started cutting his Nvidia holding, and in the third quarter, he sold all of his Nvidia shares.
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At the same time, Druckenmiller opened a $41 million position in a rapidly growing AI player that, like Nvidia, also split its stock this year after enormous gains. This represents the investor's second-biggest new position by value in the quarter. Let's find out more about this famous investor's latest moves and consider whether you should follow.

Image source: Getty Images.

First, let's consider Druckenmiller's sale of Nvidia. Does this mean he's lost faith in the AI leader?

Not at all. According to comments made in press interviews, Druckenmiller believed valuation had reached a high point -- and it was time to lock in profits. Meanwhile, Nvidia continued to advance and now is heading for an increase of more than 180% this year. In a Bloomberg interview last month, Druckenmiller even said closing the Nvidia position was a mistake, and if the price were to decline, he would consider scooping up Nvidia shares again.

Though Druckenmiller viewed Nvidia shares as a bit pricey, he continues to believe in the Nvidia story and potential for more growth ahead. If Nvidia's valuation dips at some point moving forward, it's very possible the stock will once again find itself in Druckenmiller's portfolio.

Let's move on to Druckenmiller's recent AI addition. This company saw its shares soar more than 400% over five years, surpassing $1,000 and, like Nvidia, it announced a 10-for-1 stock split this year to make the stock more accessible for a broad range of investors. A split doesn't change anything fundamental about a company, but through the issuance of more shares to current holders, it lowers the per-share price.

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Billionaire Stanley Druckenmiller Just Sold All of His Nvidia Shares and Bought This Rapidly Growing Artificial Intelligence Stock-Split Stock

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Stanley Druckenmiller wowed investors year after year with his winning streak at the helm of Duquesne Capital Management. This top investor closed the fund in 2010 but has since continued investing through the Duquesne Family Office -- and one of his favored stocks in recent times has been artificial intelligence (AI) giant Nvidia (NASDAQ: NVDA).

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Website #4    What Are the Risks of Investing in a Bond?

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Website #4    What Are the Risks of Investing in a Bond?

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This website provides a overall overview of investing in bonds, focuses both on its risks and benefits. It explains how bonds are safe that generate stable income and how they come with some risks such as interest rate risk, default risk, inflation risk, and many others. Each type of risk is clearly explained with examples and it also demonstrate on how inflation and interest rate effects the value of a bond. The website also covers where and how to buy bond which is a useful info for beginners.

I chose this website because it gives in depth info about the bonds which is very beneficial for beginners. The detailed section on reinvestment risk, which many other resources overlook, was unique. It was very helpful to see how reinvested proceeds might result in much lower returns in a decreasing market.

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What Are the Risks of Investing in a Bond?

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Considering investing in the bond market? Explore the potential risks, including interest rate, reinvestment, call, default, and inflation risks.

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This images shows that investing is like growing a plant, you plant your money, take care of it, and over time, it grows into something bigger.

I chose this image because it perfectly shows how investing is like planting your money, letting it grow over time. It's a simple, relatable way to understand the benefits of long-term investing.

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This image shows the difference between saving and investing. It shows how saving keeps your money the same as when you put while investing helps it grow over time. It’s a simple but powerful way to see the potential of putting your money to work.

I chose this image because it’s a great visual to help readers understand why investing can be a smarter option than just saving.

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1. What did you learn about your topic that surprised you the most?

What surprised me the most was how different the risks and benefits are for bonds, stocks, and mutual funds. For example, I didn’t realize that bonds that seems safe can still lose value due to things like interest rate or inflation. It made me see that every investment comes with some kind of risk even the ones that are safe.

2. Provide a real-life example of how this topic is relevant or interesting for you.

This topic really awarded me of my mistakes. For many years I just let my money sit in a saving account or just spend it unnecessary. Learning about investments made me realize that I could have started small with mutual funds or even bought a few stocks to let my money grow over time. It’s like a missed opportunity that I can fix now.

3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

The most important thing that I would share is that to say: don’t be afraid to invest, but make sure you understand the risks and benefits. Start with something like mutual funds if you’re unsure because they’re managed by professionals. Do not put your money into a saving account since it would loss its value overtime, instead invest the money and grow it.