The mechanics of investing without the hype: index funds, ETFs and mutual funds, compounding, fees, diversification and matching risk to your time horizon. Educational only — capital is always at risk.
3 articles in this category, updated regularly.
ETFs and mutual funds can hold identical portfolios yet behave differently. How each is priced and traded, where dealing costs creep in, and how tax and regulation such as UCITS differ across the US, UK and EU.
Compounding is growth on growth, and its effect is almost invisible for years before it dominates. The mechanics, a worked example at an assumed rate, and why volatility and the order of returns matter.
An index fund buys the whole list instead of picking winners. How indices are built, how funds copy them, how passive differs from active, and why tracking difference matters more than the headline fee.