2 Best Mutual Funds Categories for Beginner Investors

2 Best Mutual Funds Categories for Beginner Investors

Published on 10 July 2023

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Transcript
00:00
Hey everyone, welcome back to our channel!
00:03
In today's video, we're going to talk about the two best mutual fund categories for beginner investors.!
00:10
If you're new to investing, mutual funds can be a great way to start building your portfolio.
00:16
They offer diversification, professional management, and are generally less risky than individual stocks.
00:24
The first mutual fund category that we recommend for beginner investors is index funds.
00:30
Index funds are a type of mutual fund that tracks a specific market index, such as the S&P 500.
00:37
They offer broad exposure to the market, which means you're investing in a diverse range of companies.
00:43
This can help reduce your risk and provide steady returns over time.
00:48
The second mutual fund category that we recommend for beginner investors is target-date funds.
00:55
Target-date funds are a type of mutual fund that automatically adjusts its asset allocation based on your target retirement date.
01:03
This means that as you get closer to retirement, the fund will gradually shift its investments from stocks to bonds, which are generally less risky.
01:12
Target-date funds are a great option for investors who want a hands-off approach to investing.
01:18
So, those are the two best mutual fund categories for beginner investors: index funds and target-date funds.
01:25
Of course, these two categories are a great place to start.
01:30
As always, make sure to do your own research and consult with a financial advisor before making any investment decisions.
01:38
Thanks for watching!
01:40
If you found this video helpful, please give it a thumbs up and subscribe to our channel for more investing tips and advice.!
01:47
See you in the next one!.