Investors continue to buy managed mutual funds. Though most mutual fund managers rarely consistently beat the averages.
Another little known fact: Often, when some managers are actually doing better than indexes in the particular type of fund they are managing. they sometimes get nervous about the market. Then, they may play it safe and merely attempt to emulate the averages the rest of the year. Reason? They may be afraid to continue to defy the odds of being successful compared to indexes.
Besides, index mutual funds and ETFs are generally much cheaper than managed funds. Low cost is a most important investment factor you can rely upon for long-term results.
I have always suggested that index funds be bought instead of managed funds. Especially with the large mutual fund portfolios, all managers tend to find it very difficult to outperform indexes anyway.
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