investing money

Out of context: Reply #44

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  • doggydoggdog0

    How safe are Index Funds?

    doggydoggdog 0Permalink
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    • Depends which index. And if you buy uranium miners index, you are buying 2 good companies out of a 100 for example.shapesalad
    • and you are hoping the good ones in the index out perform all the loses of the bad ones + out perform inflation, and the broader market index.shapesalad
    • And that the index actually hold stocks and not a basket of derivatives that closely approximate the stocks.monNom
    • and that you are not buying a 2x+ return index fund that is _guaranteed to lose all of your money_ if you hold long term. They are for day-trading only.monNom
    • And that the provider of that fund remains solvent, and that your trading platform doesn't limit trading (robinhood), and that your holdings are rehypothicatedmonNom
    • ...and lost, like MF Global

      So, as these things go, pretty safe.      monNom
    • Oh yes, and sometimes they will cancel redemptions. I think in 2008 a bunch of 'good as cash' money market funds did that.monNom
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