FYI: Ivestors got a shock when stocks nose-dived at the end of last year. And there’s been talk lately of slowing global economic growth and persistent worries of a recession here in the U.S.
To sleep better at night, you might consider a defined-outcome investment, which enables you to participate in a rising stock market while protecting you from most of the downside risk.
An example of this type of investment is the Defined Preservation 95 Fund from m+ funds.
The Defined Preservation 95 Fund is designed to provide a return equal to that of the SPDR S&P 500 ETF SPY, -1.35% for a three-year term starting on Oct. 31, 2018, capped at a gain of 27%. At the same time, it offers downside protection of 95% of the invested amount. (The SPDR S&P 500 ETF tracks the performance of the S&P 500 Index SPX, -1.42% ).
This is a unit investment trust — an investment company that has a fixed portfolio for a limited time, after which the company is liquidated and its unit holders repaid. (Mutual funds are also investment companies, but they are open-ended, meaning they don't come to an end at any specific time, their portfolios change and they constantly issue new shares and redeem shares.)
The net asset value (NAV) for a unit investment trust or a mutual fund is the market value of the portfolio divided by the number of shares.
Regards,
Ted
https://www.marketwatch.com/story/this-stock-fund-provides-a-safety-net-by-guaranteeing-almost-all-of-your-principal-2019-01-23/print
