IDEAS home Printed from https://ideas.repec.org/a/pet/annals/v17y2017i1p67-74.html
   My bibliography  Save this article

Considerations on Investing in Index Funds

Author

Listed:
  • Alexandru Cristian Dobre

    („Lucian Blaga” University of Sibiu, Romania)

  • Tatiana Ioana Stanese

    („Lucian Blaga” University of Sibiu, Romania)

  • Cătălin Florin Zeti

    („Lucian Blaga” University of Sibiu, Romania)

  • Mihai Aristotel Ungureanu

    (Romanian-American University of Bucharest, Romania)

Abstract

People around the world are trying to find different solutions to keep their money. Not only will they keep money but also want to invest it to achieve capital growth on this investment. In common knowledge putting money in the bank is the best decision to save money while the interest rate programs in banks are three to four times lower than capital appreciation by placing savings within ETFs (Exchange Traded Funds), index funds or similar devices.The very idea of investing in shares can bring us to a defensive thinking of taking risks, but what happens if we think long-term? Banks currently offers an interest rate of 2-3% per year at a maximum rate of interest that is actually even lower after taxation. Investing in index funds can make a capital increase of up to 10% per year over a period of 5-10 years. Do these investments involve risk? Are these investments guaranteed? What is the liquidity of the money invested? These are some questions that we will try to answer in this article observing the reality that exists in their management and short history.

Suggested Citation

  • Alexandru Cristian Dobre & Tatiana Ioana Stanese & Cătălin Florin Zeti & Mihai Aristotel Ungureanu, 2017. "Considerations on Investing in Index Funds," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 17(1), pages 67-74.
    • Handle: RePEc:pet:annals:v:17:y:2017:i:1:p:67-74
    as

    Download full text from publisher

    File URL: https://www.upet.ro/annals/economics/pdf/2017/p1/Dobre-Stanese-Zeti-Ungureanu.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    index funds; ETF; mutual funds; capital growth; investment;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pet:annals:v:17:y:2017:i:1:p:67-74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Imola Driga (email available below). General contact details of provider: http://www.upet.ro/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.