Nominal vs Real Interest Rate: When you hear someone mention an “interest rate”, they are most often referring to the current market, or nominal interest rate. Real interest rates are inflation-adjusted rates used in time-value of money calculations such as annuity or retirement calculations.
If you watch CNBC or read the Wall Street Journal, you may hear or see terms and acronyms mentioned by market analysts, investment professionals and the financial press.
We get it; when markets are turbulent, particularly when stocks fall unexpectedly, resisting the urge to start looking for reasons to bail out of the market can be a tall order. Yet the future is inherently uncertain; there are no guarantees in life or when it comes to investing. Anything can happen.
A mutual fund pools money received from investors, and issues fund shares to shareholders. It then invests in securities (stocks, bonds and money market instruments) related to the fund's investment objective.