The Mogo Blog

Basics: What are Actively Managed Funds?

Let’s get back to basics! This series unpacks commonly misunderstood terms so you can level up your financial vocab. Investing is an important part of financial strategy for many Canadians. Investment can take many forms, and you can invest via many different avenues, from buying stocks to opting into a mutual fund. Even buying a bar of gold and burying it in your yard with the expectation of reselling it at a higher price could be considered investing—though it could also be considered absolutely nuts. So. You might consider investing via actively managed funds instead. What in the heck is that? We’ll tell ya! What are Actively Managed Funds?Actively Managed Investment Funds are… exactly what they sound like. They’re often unique funds hand selected to your specifications, and then managed by an investment fund manager or an entire team of managers. The idea behind actively managed funds is that your fund manager, in carefully buying or selling assets at just the right moment, can beat overall market performance, or “outperform” the market. For example, say a stock market index tracks an average price increase of 6% (this is not a guarantee, merely an example!). Your

Basics: What is Nasdaq?

Let’s get back to basics! This series unpacks commonly misunderstood terms so you can level up your financial vocab. Today: Nasdaq! One of those words that looks weirder every time you type it. This will be torture. Nasdaq. Nasdaq. Ugh. Anyways. What is Nasdaq? It was originally affiliated with the governing body that created it, the National Association of Securities Dealers (NASD), but in 2006 it separated to become a national securities exchange independent from NASD. The following year, Nasdaq teamed up with a group called OMX; this group—now called Nasdaq OMX—is currently the biggest exchange company in the world. Our pals at Investopedia have a more detailed timeline if you’d like to read more. That’s the origin story of the now very popular Nasdaq, a market which lists the securities of a ton of high profile and well-known companies. There’s also the Nasdaq Composite Index, an index which tracks the performance of stocks listed on the Nasdaq exchange. What Are Securities?Good question! There are three types of securities: debt securities, equity securities, and hybrid securities. Each of which have unique ways for corporations to raise money, and for owners of securities to

How to Invest

Grow your dollars now b/c future you deserves it The stock market is one of those tricky things to wrap your brain around. If we asked you how to invest, could you answer? Not broadly, like, “when you invest you buy stocks and the value of those stocks impacts your wealth over time.” But like. How? What are the steps? What do I click on? We’ll tell ya. There are several points at which you must check your vibes while investing. The first: choosing your interface with the stock market. Uh oh! What the hell does that mean! Don’t stress. Decide: would you like to use an investment manager (a guy in an office with a desk phone that manages your investments for you and tries to beat the market) or a robo-advisor (an algorithm, often accessed by an app, that invests for you and has a pretty consistent success rate). Generally, actively managed funds come with more fees. You’re paying for Brad or Chad or whoever’s personal experience and expertise. Robo-advisors have the distinct edge of charging fewer account fees and generally accepting a lower minimum account balance, which makes them suitable for folks