The true cost of home bias and currency risk on investments

 mount rushmore us presidents.When looking at stock market investment returns all is not as it initially seems. The returns of the separate funds within your personal portfolio can vary drastically from the actual returns of the underlying funds. This happens if your holdings are diversified; when you are invested in funds from different regions across the world.  The main reason for the difference in performance is the impact of risk caused by the variations in global currency exchange rates and Continue reading

A dollar of passive income is worth two of active income

paasive-income-new-pound-coinImagine getting paid without lifting a finger or breaking some sweat. This situation is a dream to most people and very difficult to achieve without being fortunate enough to win the lottery, receive some inheritance or some other windfall. For the rest of us, it is up to hard work, saving hard and strategic investing to achieve this status. Passive income is the holy grail in the personal finance space and in this article I break down how valuable this type of income really is. Continue reading

How to track dividends for stock market index funds

“It pays dividends” – This is a fairly common saying which means that there will be a reward if we put a lot of effort into an activity or purpose. However, depending on the particular activity, it is not always possible to visualise these rewards even though they may not be abstract. A good example of this is the dividends paid by Accumulation stock market index funds. Continue reading

Top 5 Portfolio Holdings – UK Index Fund

uk index fund investingHere are the top 5 companies in a typical United Kingdom (UK) Index Fund. Investing in index funds is a way of owning slices of real companies which provide value and generate income. It is like having millions of workers doing their best every day to make you wealthier, even if it is at a small scale initially. This is part of a series of posts outlining the top company holdings within index funds for Continue reading