The latest research confirms what many other studies have demonstrated: that investors should put their money in low cost index funds and skip higher cost actively managed mutual funds. ETF manager Rick Ferri compared passive (index) funds against 5,000 randomly selected active portfolios using 32 different investing strategies. “The indexing solution won 82.9% of the time on average, and in the small percentage where active funds outperformed the median outperformance was 0.5%.” According to Ferri, “The bottom line is a fee. Fees matter.” And if taxes were added into the mix, the advantage for indexing over actively managed funds would be even greater. Read a bit or detail or delve into the full study with this link:
http://www.thinkadvisor.com/2014/01/28/how-does-passive-beat-active-let-me-count-the-ways?page_all=1
Index Funds Outperform Actively Managed Funds
Reviewed by Pisstol Aer
Published :
Rating : 4.5
Published :
Rating : 4.5