PHYSICS 102 Lecture Notes - Lecture 4: Momentum Investing, Mutual Fund, Investment Strategy
Document Summary
Advantages: economies of scale, lower costs, professional management (?) Start as passive, then if you see that active is profitable turn active, small amount enough to participate. Mutual fund you can invest 50 euros a month you can get a share that contains all those companies. First fund 1774 in the netherlands called eedndragt maakt magt (unity creates strength) and invested in foreign bonds. Nav easy to get out, you can just go to the bank/fund. Once a day 1 day delay but you can always get rid of it. Fixed you get in at the start and then it"s closed. Because of mechanism that you cannot get out! Continuous in principle, but if nobody is interested in your share. Price drops until when it"s low enough and someone picks it up. More liquid more likely to put it in an open end. Real estate, infrastructure, private equity, natural resources, land: closed.
