4Module 4

Index Funds & Diversification

Once you understand individual stocks and bonds, the next question is how to hold many of them at once without picking each one yourself. This module covers funds, diversification, and the market benchmarks you'll see quoted everywhere.

4 chapters · about 19 minutes

  1. 4.1ETFs vs. Mutual Funds: Owning Many Companies at Once4 min

    Riya wanted to own thirty companies and had time to research one. What do people actually do about that?

  2. 4.2Why Diversification Matters: Don't Bet on One Bakery6 min

    One kitchen. One inspection. One Thursday afternoon. How much of your life should any of those be able to take?

  3. 4.3Cyclical vs. Defensive Stocks: Who Struggles When the Economy Slows?4 min

    Same economy, same months, three holdings — and three completely different reactions. Why?

  4. 4.4What Is a Stock Market Index? The Nifty, the Sensex, and the S&P 5005 min

    Riya finally had a year of careful investing to judge. Judge against what, exactly?