Investing in Equity Funds: A Beginner’s Guide
| Average Real Return 1974-2023 | Average Real Return 2014-2023 | Years of Positive Returns since 1928 (%) | |
| S&P 500 | 8.42% | 9.98% | 67% |
| 10-Year Treasurys | 2.73% | -0.78% | 56% |
| Investment Grade Corporate Bonds | 4.87% | 2.01% | 71% |
| Real Estate | 1.61% | 4.16% | 56% |
| Gold | 4.11% | 3.32% | 41% |
A major benefit of investing in equity funds is diversification, a risk management strategy that involves spreading investments across a range of assets. This helps minimize the impact of any single investment’s performance on the overall portfolio. By investing in various stocks across different industries and sectors, equity funds help mitigate the risks of investing in individual stocks.
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