Asked on 14 Apr 2020
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?
Colin Lim, Financial Services Consultant at Colin Lim
Answered on 14 Apr 2020
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.
Why active management by yourself (or a fund manager) is a very disadvantageous idea you could read here:
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...
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
Active vs. Passive is based on 2 factors: how much time and capital you have on hand. For...
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