Being smart with $$ - A chance to make money but more likely lose it

An "actively-managed fund at least has a shot at (beating an index fund)" is a statement heard in Kiplinger's (07/2015) as an argument for paying for active management.   Yet the same article admits that the S&P 500 index funds beat actively-managed large cap funds by a half percent per year for 10 years! On a $10,000 investment, that difference would have cost you $1000.  Yes, active funds can outperform but they can also underperform and are more likely to do so.  I will stick with the sure thing.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com