Benefits of Index Investing
- 01:18
Analysis of the benefits of index investing.
Downloads
No associated resources to download.
Transcript
the benefits of index investing index investing benefits investors by bringing low-cost access to a diverse range of markets and asset classes for every investor type index products help people build wealth fund retirement and Achieve other Financial objectives more conveniently and with greater transparency. It also benefits companies patient long-term investors allow the company to make long-term decisions which in turn are beneficial to the company and the economy short-term investors May incentivize the company's management to focus on short-term price increases to the detriment of their longer term prospects. Finally, it benefits markets price Discovery helps investors identify an actionable market price for security or other instruments based on factors, like supply and demand exchange traded funds known as ETFs contributes the price Discovery process in two ways firstly ETFs provide a way for investors to express their Market views, thereby reflecting investor sentiment about risk and return and secondly ETFs offer real-time access to markets and can help provide prices. Even when the underlying markets are closed or hard to trade.