Asset classes versus indexes?

Asset class investing and indexing are two passive investing approaches. The third general approach is active management.

Understanding the philosophical differences of the three approaches is important so you may better understand what your adviser is doing with your money and they view markets when they give advice.

None of the approaches prevent loss. They deal with risk versus reward differently.

About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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  1. Pros and Cons of different styles of investing | Better Financial Education Blog - May 15, 2013

    […] Further discussion in a short blog on the difference between asset classes and indexes. […]

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