FAQ

Common questions about the basics of investing, equities, funds, and portfolios, organised by category

Common questions

Where to go back to when unsure

Back to the basics: 1-1 What does investing actually involve?
For equities: 2-1 What is a share?
For funds: 3-1 What is a mutual fund?
For allocation: 4-1 What is a portfolio?
To check a term: Glossary
To check a formula: Formula reference

Formula Reference

The formulas that appear in Investing Fundamentals, ordered by equities, funds, portfolios, and advanced topics

Topic LinksDocs Home Chapter 1 — Build the Foundation Chapter 2 — Understand Equities Chapter 3 — Understand Mutual Funds Chapter 4 — Build a Portfolio

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FAQ

Common questionsCopy Anchor Link

BasicsWhere should I start with investing?

BasicsIs holding only deposits not good enough?

BasicsIs it more efficient to invest all my spare money?

BasicsIs comparing products first the faster route?

BasicsDoes risk mean dangerous?

AccountsIf I use a tax-advantaged account, is any product I buy safe?

EquitiesAre equities gambling?

EquitiesWhy does a share price fall on good earnings?

EquitiesCan I understand why a price moved just from company news?

EquitiesIs a high dividend yield reassuring?

EquitiesIs a company that pays no dividend a bad company?

EquitiesDoes a low P/E or P/B mean cheap?

EquitiesDo I need CAPM and factor models before looking at individual shares?

FundsAre funds safer than individual shares?

FundsCan I choose a fund from a popularity ranking?

FundsWhich is correct, index or active?

FundsDoes holding both global equities and the S&P 500 diversify me?

FundsDo distributions come only from a fund's profit?

FundsAre monthly-distributing funds reassuring because income arrives monthly?

FundsAm I losing out with a non-distributing fund, since I receive nothing?

FundsIs choosing the lowest expense ratio enough?

FundsHow should I think about ETFs versus funds?

PortfolioWhat am I actually deciding in a portfolio?

PortfolioCan I decide my allocation from age alone?

PortfolioAm I diversified if I hold many holdings or many funds?

PortfolioDoes rebalancing mean returning precisely to the original weights every time?

PortfolioShould I swap products immediately when the market falls?

PortfolioWill portfolio optimisation give me the correct allocation?

PortfolioDo bonds and deposits only drag the return down?

Metrics & formulasShould I understand the formulas before reading the learning chapters?

Metrics & formulasCan the Sharpe ratio and volatility tell me which product is good?

BasicsI do not know where to start reading.

Where to go back to when unsureCopy Anchor Link

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Common questions

Where to go back to when unsure