Investment Options
RamseyInvesting.com doesn’t believe that one investment style fits all. We realize that some investors believe active investing is better than passive investing over the long term and vice versa. And from our experience, some investors only want to invest with a social screen in place.
RamseyInvesting.com isn’t here to tell you which investing style/option is right for you. We are here to provide you with quality investments that match your investing style. We are neutral on which one is best. We are, however, passionate about diversification and providing quality investment options to our clients.
RamseyInvesting.com offers portfolios within three investment styles:
Active – Mutual funds whose managers actively buy and sell investments
- Actively managed funds attempt to “outperform” a particular index or benchmark in the market, such as the S&P 500 Index.
- Managers of these funds make decisions based on current economic trends, politics and other events, as well as company-specific factors with the intent of outperforming their index.
- From time to time we may make tactical asset-class weighting recommendations based on fundamental analysis of the relative valuation of certain market sectors to others. When we do, we will invest in an index fund or an Exchange Traded Fund (ETF) to accomplish this tactical reallocation. We don't use actively managed mutual funds for tactical reallocations because we are not confident that an active manager can beat an index during a potentially shorter timeframe.
Socially Responsible – Mutual funds that invest based on specific social and ethical screens
- Socially Responsible Investing (SRI) involves picking investments based on specific social and ethical screens.
- Some SRI managers exclude investing in products such as tobacco, liquor, nuclear power, weapons, etc.
- Other SRI managers invest in companies that promote positive ideas such as educational companies, environmentally or socially conscious companies, health care providers, etc.
- Socially Responsible investing is subjective, and what one person considers responsible, another may not. RamseyInvesting.com provides an option for individuals to invest in funds we believe are in line with core socially responsible principles.
Passive – Passive portfolio managers do not believe an investor can outperform a benchmark over the long-term.
- Investment managers who take this approach will buy all equities in the same proportion as their index, striving for similar results.
- Passive portfolio managers don’t make decisions about which securities they buy and sell. Their decisions are guided by changes within the index they are tracking.
- Passive portfolio managers do not believe in investor can outperform a benchmark over the long-term
RamseyInvesting.com only recommends mutual funds and Exchange Traded Funds (ETFs). We recommend a wide variety of mutual funds from many different fund families. The fund families represented in our recommendations include Ariel, Artisan, Baron, Calvert, Fidelity, Harbor, PIMCO, Vanguard, etc.
For some mutual funds RamseyInvesting.com is able to provide it's clients access to institutional mutual fund share classes with lower fees than are typically available to individual investors.