Traditionally, if you wanted to invest in financial markets, you had two choices, buy a stock through a broker, or give your money to an investment house and they bought stocks on your behalf.
Both options on the face of things sound great, but do they actually work?
Investment professionals may study financial markets, learn about new variables that can forecast returns that provide decent profits. However, there are two problems with this, first, it is often difficult to navigate between the good and bad investment professionals, and also, they charge fees. None of this superior information, hours spent analysing financial markets or companies, comes for free.
Therefore, after fees, profits can seem quite insignificant. For many years the markets have consistently outperformed many investment houses after fees are taken into consideration.
By watching and learning from our videos, you will soon be able to take control of investing your own money.
In addition, what if you are unlucky enough to find a poor investment professional, one that cannot consistently beat the market, then you generally have a bigger problem of low profits and high fees.
Whilst daunting, the alternative of investing in an individual company may be even worse, all your eggs in one or even a few baskets can work for some people, but again a considerable theme in both strategies is luck.
It is easy to find success stories on the Internet of novice investors making millions with small initial sums, hardship stories of investors losing life savings are often less reported.
Throughout this website, we will teach you all the terminologies of investment products and we will explain the intricacies of investing in Exchange Traded Funds.
In simple terms, an ETF is a basket of stocks, it is a hybrid asset that can track the profits and losses of numerous companies. Inside an ETF, your returns are based on the returns of many, therefore reducing investment risk considerably. Perhaps the best part, the fees are often considerably cheaper compared with investment professionals.
Throughout this website, our experts will explain all different financial terminologies and products. We will also go into much more depth and analysis on many of these investment products.
This website is purely educational, and please refer to our terms and conditions before using, remember investing in the financial market can carry a considerable amount of risk.
Our very name comes from the passion we all have for index funds (equity traded funds in terms of stock market investing).
Simply put, ETFs provide a platform to invest in numerous companies at once without the need for high brokerage fees.
Across the website, we will teach the basics of investing, our core principle is that when you leave, you will have the knowledge to Invest in your first ETF.
Take a look at our courses page if you would like to learn more about investing.
Comments of things you would like to see on the website are welcomed at help@investinetfs.co.uk.