What Is Investing, Inflation And Index Fund?

What is Investing, Inflation and Index Fund?

WHAT IS INVESTING?

Do you know what’s the difference between Assets and Liabilities? Assets are simply things that give us money while liabilities are those that takes money away from us.

It’s everyone’s dream to be financially free and one way you can do so is to have Passive Income. However, is a job considered as a Passive income? The answer is NO. Because the moment your hand stop, your salary stop!

WHAT IS INFLATION?

It occurs when prices rise, decreasing the purchasing powers of your dollars which one of the example was the Great Inflation in 1970s that not only took place once, but TWICE!

Basically, there are 2 types of Inflation, namely :

  • 1. Headline Inflation – Is a measure of the total inflation within a economy, including commodities such as food and energy prices, (eg: Oil & Gas) which tend to be more volatile and prone to inflationary spikes.

  • 2. Core Inflation – Represents the long run trend in the price level,  in measuring long run inflation, transitory price changes should be excluded. One way of accomplishing this by excluding items frequently subject to volatile prices, like food and energy.

WHAT IS AN INDEX FUND?

An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor’s 500 Index (S&P 500). An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover.

So, would you be keen to learn on how to invest safely and consistently across the companies that you have come across?

DISCLOSURE

The above article is for educational purposes only. Under no circumstances does any information provided in the article represent a recommendation to buy, sell or hold any stocks/asset.  In no event shall ViA or any Author be liable to any viewers, guests or third party for any damages of any kind arising out of the use of any content shared here including, without limitation, use of such content outside of its intended purpose of investor education, and any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages resulting from such unintended use.

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