Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: galeno Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 20075  
Subject: Re: Load Vs. No load mutual fund Date: 6/4/2000 10:23 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
peppermintpatty wrote:
In a rising market Index Funds should be expected to lead the pack, with managed funds attempting to keep up and/or surpass the index. However in a flat or declining market you might find yourself better off in an actively managed account, where a fund manager can
cull out underperforming assets.

I refer you to the following link:

Over any 10 year rolling period, a simple S&P500 index fund soundly beats 90% of all managed money. Period. When you extend the rolling period to more years, the index fund shines even more brightly.

The main problems with managed mutual funds are cost, agency conflicts (short-term thinking and emotionalism), over-diversification, portfolio turnover, and more that I can't think of right this second.

Over the long run, the stock market goes up 2/3ds of the time and down 1/3rd of the time. Investors understand this. Traders don't. Unfortunately, almost all managed mutual funds are run by the traders' mentality.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.