Last year Passively Managed Mutual Funds (aka Index Funds)
returned 1.2% more than Actively Managed Funds according to Money Magazine
(through 11/2014). Makes sense. That's
about the amount of the fees Actively Managed Funds take out to pay the
managers. Individual investors did even
worse, trailing Index Funds by 2%.
Individuals have a knack for panicking and selling low or jumping into a
winner after a stock has already risen all it's going to. The most boring choice wins again.
- Larry Pike, CFA
- www.clientpriority.com
- www.clientpriority.com
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