Anonymous
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?
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7 answers
Answers (7)
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.
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Frankie Rappaport
Updated on 27 Apr 2020
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
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
Post
Cynthia Jasmin
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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