Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: Linne Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 221  
Subject: Re: Glossary question #1 Date: 1/9/1999 1:28 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
"One problem is that in the past five years there have been over 5,500 new mutual funds unleashed on the public. Most stink. But not the ones chosen for your plan. Many of the Plan funds have outperformed the S&P over long-term horizons. Importantly, the core equity options contain less risk than the index, as measured by standard deviation."

Hmmm... I thought the options he was talking about were your choices of mutual funds. In the plans I have been in, they seem to pick one each of various type of funds, so you have one bond fund, one balanced fund, one growth fund, etc. The "core" equity options would be the stock funds you could choose that would be the most mainstream (probably excluding aggressive growth and international funds).

Then what he means by risk, of course, is volatility, which IMHO diminishes in importance the longer you intend to keep the investment. Sorta like an impressionist painting, which is really wild when you stand up close, but when you step back it looks quite orderly and serene.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement