Tải thêm nhiều sách tại : www.com Praise for All About Index Funding Ferri’s book is an engaging one-stop storehouse of knowledge on index funds. It is a vital roadmap for those seeking higher returns and lower risk. Worth its weight in gold! —William Bernstein Investment advisor, author of The Intelligent Asset Allocator It is said that there is no one more religious than a convert. So when a former stockbroker comes to believe that owning the entire stock market through an index fund is the key to investment success, he presents his case with passion.
And Ferri is right! This book tells you why, and how to get started. Bogle Founder and former chairman, The Vanguard Group All About Index Funds clearly explains why investing in index mu- tual funds is the only reliable winning strategy. Ferri compares and contrasts active mutual funds with index funds in a way that even a novice will have no trouble navigating. Once you read this book, you will no longer listen to the hype from Wall Street stockbrokers and their analysts who are paid to make money from you, not for you.
—Larry Swedroe Investment advisor, author of What Wall Street Doessn’t Want You to Know Tải thêm nhiều sách tại : www.com OTHER TITLES IN THE “ A L L A B O U T .” F I N A N C E SERIES All About Stocks, 2nd edition by Esme Faerber All About Bonds and Bond Mutual Funds, 2nd edition by Esme Faerber All About Options, 2nd edition by Thomas McCafferty All About Futures, 2nd edition by Russell Wasendorf All About Commodities by Thomas McCafferty and Russell Wasendorf All About Mutual Funds, 2nd edition By Bruce Jacobs All About Real Estate Investing, 2nd edition by William Benke and Joseph M. Fowler All About Your 401K Plan by Ellie Williams Clinton and Diane Pearl All About Variable Annuities by Bruce Wells All About DRIPs and DSPs by George C. Fisher Tải thêm nhiều sách tại : www.com ALL ABOUT INDEX FUNDS The Easy Way to Get Started RICHARD A. FERRI, CFA McGraw-Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Tải thêm nhiều sách tại : www.com Copyright © 2002 by The McGraw-Hill Companies, Inc.
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This limitation of lia- bility shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise.1036/0071423389 Tải thêm nhiều sách tại : www.com Want to learn more? , We hope you enjoy this McGraw-Hill eBook! If you d like more information about this book, its author, or related books and websites, please click here. Tải thêm nhiều sách tại : www.com For more information about this title, click here. CONTENTS PREFACE AND ACKNOWLEDGMENTS vii PART ONE INDEX FUNDS BASICS Chapter 1 What Are Index Funds? 3 Chapter 2 Why Index Funds Work 17 Chapter 3 A History of Index Funds 31 Chapter 4 Exhange-Traded Funds 43 Chapter 5 The Tax Advantage of Index Funds 59 PART TWO DIFFERENT TYPES OF STOCK AND BOND INDEX FUNDS Chapter 6 Broad U. Equity Index Funds 75 Chapter 7 U.
Sector Index Funds 105 Chapter 8 Global and International Index Funds 119 Chapter 9 Bond Index Funds 133 Chapter 10 Enhanced, Leveraged, and Inverse Index Funds 149 Chapter 11 Create Your Own Index Fund 159 Tải thêm nhiều sách tại : www.com v Copyright 2002 by The McGraw-Hill Companies, Inc. Click Here for Terms of Use. vi Contents PART THREE MANAGING YOUR PORTFOLIO OF INDEX FUNDS Chapter 12 Realistic Market Expectations 169 Chapter 13 Asset Allocation 185 Chapter 14 Defining Your Financial Goals 197 Chapter 15 Designing Your Index Fund Portfolio 215 Chapter 16 Tips on Account Operations 239 APPENDIXES Appendix A Low-Cost Index Fund Providers 251 Appendix B Recommended Resources 253 GLOSSARY 257 INDEX 267 Tải thêm nhiều sách tại : www.com P R E FAC E AND ACKNOWLEDGMENTS Welcome to the new and evolving world of index mutual funds. By the time you finish reading this book, you will be well versed on the many types of index funds available in the marketplace and how to utilize them in your investment accounts.
All About Index Funds is loaded with good advice that you can use to manage small ac- counts and large accounts. The strategies put forth are simple, straightforward, and will lead to greater wealth and personal satis- faction. Index mutual funds use a “passive” investment methodology. The funds simply hold the same stocks or bonds as one of the pop- ular market indexes, such as the Dow Jones Industrial Average.
Al- though a portfolio manager is responsible for the actual mechanics of running an index fund, a computer does most of the work. This means the cost of management is much less than traditional “ac- tively managed” mutual funds, where large research staffs are em- ployed to pick and choose individual stocks and bonds. There are several types of stock and bond index funds available, and this book will help you select the right mix of funds for your needs. Besides earning more money, an investment in index funds saves time and reduces stress.
No longer will you waste away the hours sifting through thousands of stocks, bonds, and active mut- ual funds trying to find meaning in it all. No longer will you make hasty investment decisions based on incomplete or incomprehensi- ble marketing brochures. By investing a little of your time today to learn about this marketplace, you will save weeks of time and tor- ment in your life. Indexing is a simple, clean, and cost-effective so- lution to your investment needs.
Make no mistake about it, embracing the concept of using in- dex mutual funds can be a life-altering event. It is somewhat like switching religions. When you were young you may have been taught the beliefs of one specific religion, but as you got older, those teachings did not work for you. So you searched for deeper mean- ing and discovered a better alternative, a better religion.
The same goes for indexing. All your life you read the popular financial press, Tải thêm nhiều sách tại : www.com vii Copyright 2002 by The McGraw-Hill Companies, Inc. Click Here for Terms of Use. viii Preface and Acknowledgments listened to market experts on TV, and went with a few of your stock- broker’s recommendations.
But the more experience you gained, the less that method of investing made sense. This book introduces you to an alternative style of investing that is based on sound logic and is easy to comprehend. Once you discover the many benefits of index mutual funds, your beliefs on investing will change forever. MY PERSONAL JOURNEY As a young, impressionable man in my early twenties, I held the im- pression that stockbrokers and other financial advisers were skilled professionals.
Clearly, they must have had superior training in the areas of accounting and economics and knew things about the mar- kets that common folk did not know. Because of their deep knowl- edge, these people made a lot of money for their clients as well as for themselves. So, when I was hired as a stockbroker in 1988, I fol- lowed the advice and recommendations of experienced stockbro- kers in my office as well as the analysts at my firm. I knew by doing this I was going to do very well for my clients and for myself.
Well, it didn’t take long to realize that the investment ideas turned out by my firm were no better than those pulled out of the air, and many times they were much worse. Soon I understood why our recommendations were mediocre at best. The fact is many ana- lysts and brokers have an ulterior motive for recommending certain investments. Specifically, they were doing so to generate commis- sions and fees.
To make matters worse, these people apparently had little personal belief in the ideas they were selling. The bottom of their paycheck was the top priority. This revelation created a dilem- ma in my life. I had hoped to build a successful business by follow- ing the guiding light of expert recommendations, but it wasn’t go- ing to happen.
Luckily, our firm had an “investment consulting” division that included access to top investment adviser firms and proprietary mutual fund research. Private investment advisers and mutual fund managers are not paid a commission for managing portfolios. In- stead, they are compensated based on a percentage of the money that they manage. The incentive here was to grow the accounts us- ing their superior investment skill so they could collect a higher management fee.
This seemed like a win, win, win situation. My Tải thêm nhiều sách tại : www.com Preface and Acknowledgments ix clients made money through growth, the managers made money through fees, and I got paid a cut of the fee or a commission on the mutual fund. Surely it was a recipe for success. Alas, investment consulting, too, was an illusion.