Money made simple. You don't need a PhD in economics to take control of your financial future.
Volatility is as simple as it sounds. It's a measure of how wildly the price of an investment fluctuates. A high volatility investment is considered more risky. There's greater chance of you facing a loss or a lower return than you'd hoped for if you need to sell during one of those many low points ...
We all have an ideal weight range determined by our body mass index. Turns out the same is true for our investment portfolios.
A portfolio is overweight if it contains an excess amount of a single security. If the portfolio lacks a sufficient amount of a security (mainly shares or bonds), it is considered underweight ...
Also known as "pre-emerging markets", frontier markets are countries with investable, but less developed (read: more volatile), stock markets. Due to political instability, substandard financial reporting, and other inadequacies common in these markets, they are particularly attractive to investors looking for a high risk, high reward option to fuel their next adrenaline rush ...
It would be great if this was the collective name for funds (you know, like murder of crows). It's not. A fund of funds is exactly what it says: a fund that invests in other funds. They are also known as multi-manager funds. Their primary goal is to spread your money more widely - not putting all your eggs in one basket - while (hopefully) backing the best active fund managers ...