A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Market TimingTrying to buy and sell based on predicting market moves, a strategy that is difficult to get right consistently.
- Dollar-Cost AveragingInvesting a fixed amount at regular intervals so you buy more shares when prices are low and fewer when high.
- Time HorizonHow long you plan to keep money invested before you need it, which shapes how much risk makes sense.
- Index FundA fund that owns a broad slice of the market at low cost — the backbone of most investing.
- CompoundingWhen your investment earnings themselves start earning returns, causing your money to grow faster over time.
- PortfolioThe full collection of investments you own, such as stocks, bonds, and funds held across your accounts.
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Plain-English education — not personalized legal, tax, or investment advice.