If you are new to investing or interested in learning more about the performance of your portfolio, understanding how your investment return is calculated is a great place to start. Time-weighted return vs. dollar-weighted return Returns can vary based on when you buy your investments. The two ways to calculate a rate of return are time-weighted return and dollar-weighted return. Both methods are useful, but each evaluates a different type of performance. A time‑weighted rate

Greater risk means greater return, you might have heard of this saying. Still, many investors shy away from equity investments, which can be found in actively managed mutual funds, fearing the stock market’s potential volatility. It’s true that over the short term, equity returns can fluctuate substantially, but historically, mutual funds tend to become less volatile the longer you hold on to them, while continuing to provide the potential for growth. On the other hand, fixed

Life is filled with lots of exciting moments, and you’ll likely have a couple of goals that you’re working toward. Knowing why you’re investing is the first step toward building your investment strategy. Here are three questions to help you map out your investment goals. 1. How long do I want to invest? Knowing when you’re going to need your money (your time horizon) will help you decide how much risk you may be able to take on in your investments. Short-term: Goals that you

Tip In any investment you make, there is a trade-off between risk and return. A fund that promises the potential of higher returns usually comes with higher risk. On the flip side, a fund with a low risk level might not deliver returns that are high enough to help you reach your financial goals. The right type for you may depend on your tolerance for risk and your personal investment goals. How do mutual funds work? Mutual funds are a practical, cost-efficient way to build a