Why Vanguard Small Business is the Perfect Investment for Entrepreneurs
Are you an entrepreneur looking to invest in a mutual fund? If so, you might want to consider the Vanguard Small Business mutual fund. This fund can give you exposure to a wide range of small businesses across various sectors. In this article, we’ll explore why Vanguard Small Business is the perfect investment for entrepreneurs.
What is Vanguard Small Business Mutual Fund?
The Vanguard Small Business mutual fund invests primarily in the stocks of small companies in the United States. These companies typically have a market capitalization of less than $3 billion, making them highly attractive for long-term investments. With this mutual fund, you can invest indirectly in small businesses and receive significant gains on your investment.
Why Should Entrepreneurs Invest in Vanguard Small Business?
Here are some reasons why Vanguard Small Business is the perfect investment for entrepreneurs:
1. Diversification
Diversification is critical for a solid investment portfolio, and Vanguard Small Business mutual fund can provide that. This fund invests in over 1,400 small businesses, which means that your investment is spread across different sectors and industries. This diversification lowers your risk of loss due to fluctuations in any one sector.
2. Long-term Investment Opportunities
If you want to invest your money long-term, the Vanguard Small Business mutual fund is ideal because small businesses tend to outperform large businesses in the long run. While there may be short-term fluctuations in the market, small businesses have historically shown to have robust long-term performance.
3. Low-Cost Investing
The Vanguard Small Business mutual fund has a low expense ratio, which means that you can invest your money without incurring significant costs. This makes the fund ideal for entrepreneurs who are starting out and want to keep costs low.
Examples of Successful Companies in the Vanguard Small Business Mutual Fund
Here are some examples of successful companies in the Vanguard Small Business mutual fund:
1. Inphi Corporation
Inphi Corporation is a semiconductor company that designs and markets high-speed analog and mixed-signal semiconductor solutions. The company has grown rapidly, with its stock price increasing by over 600% in the past five years.
2. The Trade Desk
The Trade Desk is a global demand-side platform that provides data-driven insights and audience targeting capabilities to advertisers. The company has grown rapidly, with its stock price increasing by over 500% in the past five years.
3. ExlService Holdings
ExlService Holdings is a business process outsourcing service provider that provides services in the healthcare, insurance, and financial sectors. The company has experienced significant growth, with its stock price increasing by over 200% in the past five years.
Conclusion
Investing in Vanguard Small Business mutual fund offers entrepreneurs a low-cost, diversified investment opportunity with long-term growth potential. By investing in this fund, you can indirectly invest in small businesses across various sectors, making it an ideal investment for entrepreneurs looking to grow their wealth.
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