Funds & IndicesFunds

A Basket Instead of One Egg

A fund holds many investments at once

Most US stocks, held for their whole lives, did worse than plain Treasury bills. So which single egg would you trust?

You'll find out

  • What most single stocks did over time
  • The 4% that made all the gains
  • What one stock did to Enron's 401(k)

Why it matters

A fund is how most people own a piece of the stock market. Knowing why changes how a hot stock tip sounds.

About 3 min6 interactive slides · 5 questionsLesson 100 · Zone 12

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More in this zone

  1. 101IndicesWhat an Index IsA list that stands in for the whole market
  2. 102IndicesThe Dow Started With 12Only one original member lasted into this century
  3. 103FundsActive and Passive FundsPicking stocks or buying the whole list
  4. 104FeesWhat 1% Costs Over a LifetimeA small fee can take a big slice of the result
  5. 105Active ManagementMost Pros Beat the MarketOver 15 years, most US stock funds trailed the S&P 500
  6. 106SimplicityBuffett's Million-Dollar BetA plain index fund beat a hand-picked set of hedge funds over ten years
  7. 107FundsETFs and Mutual FundsTwo wrappers for the same basket
  8. 108Investor BehaviorDoing Nothing Is HardPeople who traded the most earned the least