greenieS
Verified member
The S&P index fund is basically a kind of mutual fund, but it is based on 500 of the largest companies in the United States.
In other words, it is made up of some of the most successful companies in the world.
Like any investment fund, the S&P index offers immediate portfolio diversification, allowing investors to own a small portion of all those 500 companies.
The fund includes companies from all industries, which makes it more resilient compared to other types of 2021 investments.
Over time, the S&P index has provided an average annual return of close to 10%, a very encouraging figure if you ask us.
That is why we consider this fund to be an excellent choice for new investors, who want to have acceptable returns and a wide diversification of the portfolio.
Unfortunately, the cost of purchasing an S&P unit is quite high, usually exceeding $ 3,000.
risks
The S&P fund is one of the least risky equity instruments in the world, as it is made up of many successful companies.
However, as with any equity investment, this index is more volatile than funds based on bank deposits or bonds.
But even so, the S&P has evolved very well over time.
However, we must not forget the crashes from 2002 - 2003, 2008 - 2009, or even from the beginning of last year (n.r. 2020) when the value of this index decreased by 40% compared to previous years.
Many S&P unit owners saw their assets significantly diminished during those periods.
Liquidity
The S&P index is very liquid because it is a mutual fund highly sought after by investors.
And the great advantage that comes with it is that those interested can buy and sell units at any time of the day, when the market is open.
In other words, it is made up of some of the most successful companies in the world.
Like any investment fund, the S&P index offers immediate portfolio diversification, allowing investors to own a small portion of all those 500 companies.
The fund includes companies from all industries, which makes it more resilient compared to other types of 2021 investments.
Over time, the S&P index has provided an average annual return of close to 10%, a very encouraging figure if you ask us.
That is why we consider this fund to be an excellent choice for new investors, who want to have acceptable returns and a wide diversification of the portfolio.
Unfortunately, the cost of purchasing an S&P unit is quite high, usually exceeding $ 3,000.
risks
The S&P fund is one of the least risky equity instruments in the world, as it is made up of many successful companies.
However, as with any equity investment, this index is more volatile than funds based on bank deposits or bonds.
But even so, the S&P has evolved very well over time.
However, we must not forget the crashes from 2002 - 2003, 2008 - 2009, or even from the beginning of last year (n.r. 2020) when the value of this index decreased by 40% compared to previous years.
Many S&P unit owners saw their assets significantly diminished during those periods.
Liquidity
The S&P index is very liquid because it is a mutual fund highly sought after by investors.
And the great advantage that comes with it is that those interested can buy and sell units at any time of the day, when the market is open.
