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Surge in Municipal Bonds
Municipal Bonds have never been sexy unless you like steady tax-free income. Interest from munis is free from federal and state taxes if you are a resident of the state where the bonds are issued.
President Biden’s planned tax hikes have been credited with sending more money into munis. That has resulted in higher returns. In fact, municipal bonds have outperformed treasury bonds for seven straight months.
More To Come
With more cash pouring into municipal bond mutual funds, most analysts see strength in the market.
In a March report, Bank of America (BofA) concluded: “The American Rescue Plan, along with President Biden’s forthcoming infrastructure plan, forms the basis of the golden decade that we expect for muni market issuers through 2030.”
I invested in shares for the first time this week: hereâs how I did it
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May 8, 2021 â 11.00pm
May 8, 2021 â 11.00pm
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Amid ultra-low interest rates, hundreds of thousands of Aussies are dipping their toe into the sharemarket for the first time, in search of a higher return on their savings.
This week, I joined them. And because I know you love details, let me walk you through exactly how I did it.
Credit:Dionne Gain
Decide a plan for your money
Donât just go throwing your money into the sharemarket on a whim. Take time to think about what time horizon you have to invest and the possible alternative uses of your money.
Chinese Tech Stocks Plunge on Tighter Access to U.S. Markets Chinese companies looking to list overseas are contending with pressure from U.S. and Chinese regulators, with it impossible to satisfy both.
May 07, 2021 | 08:00 AM EDT
Chinese tech stocks dropped suddenly on Friday, with Chinese regulators considering tightening rules on overseas listings. Those changes, if they come, could also make life tougher for existing international listings or newly listed growth companies.
The STAR 50 Index of next-gen stocks in Shanghai plunged 3.5% on Friday, having opened higher. There are now 269 STAR-listed companies but double that, 557 in fact, looking to join.
U.S. regulators are also maintaining their pressure on Chinese listings after a string of accounting scandals on American markets. The administration of President Biden seems set to continue a process set in motion under the Trump administration, despite opposition on Wall Street.
Comparing costs of an Index Fund, Target Fund to having a Robo-Advisor
When comparing the cost of a mutual fund or ETF, you need to look at the expense ratio (which are the operating costs relative to your investment amount). The expense ratio is the percentage fee the fund charges to pay for its management.
Actively managed funds (ones that have a person running it) are the most costly. Index funds are passively managed and cost much less.
Cost of target-date funds and ETFs
According to US-based brokerage Morningstar, the average expense ratio of target date funds is around 0.78 per cent. So for every Dh100,000 you have invested in the fund, you’ll pay Dh780 in fees.