Would you focus on active or passive investment? Are there any reasons why we should invest in active funds given the high fees also? - Seedly
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Anonymous

Asked on 14 Apr 2020

Would you focus on active or passive investment? Are there any reasons why we should invest in active funds given the high fees also?

Studies showed that only 18% of active investors perform better than index. Any reasons on why we should invest in active funds given the high fees also?

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If u have time, you can do active investing. If you don't have, which I think most of us don't have, I think passive investing Is the 1 to go for.

people who help u monitor, who manage for u buy and sell...the fund managers exchange their time and knowledge for money. Whereas we use money to exchange for these active managers to manage our portfolio.​​​

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Thank You!
Can you clarify
I wonder if
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Why active management by yourself (or a fund manager) is a very disadvantageous idea you could read here:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

nowadays you can manage equity investing all by yourself with some reading (f.ex. the mentioned evidence based book). there are so many beautiful and diversified cheap&large ETFs. It is difficult to see for the beginner that the simplest solution to investing leads to best performance...​​​

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Frankie Rappaport

Frankie Rappaport

27 Apr 2020

3-5 % annual performance is already an acceptable performance for a total portfolio by modern standards, factual numbers of 15-20% are not sustainable for more than 99% of retail investors. the good guys (f.ex. MITIMCo) reach astounding 10-15% per year, out of reach to the common man

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

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CJ

Cynthia Jasmin

Level 6. Master

Answered on 27 Apr 2020

Hi there,

Active vs. Passive is based on 2 factors: how much time and capital you have on hand. For...

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