Be Smart - Be a Passive Investor

One of the first things we come across when we take on a new client is starting to make sense of the collection of policies and investments they have.They are usually in a pile somewhere and tend to consist of many different funds across several providers. Almost without exception, their investment plans include ‘active fund manager’ investments.The values vary, but 0100,000 to 0250,000 is not uncommon.A sizable amount, I’m sure you’ll agree.We have written many times on this subject - have a risk assessed portfolio - get your asset allocation right (where your money is and in what amounts) - buy and hold etc.Today we thought we would simply look at why we advocate ‘passive investments’ and not ‘active fund management’. After all, the latter is still recommended by most salespeople, banks and commission based financial advisers.To remind ourselves, active fund managers believe they can buy and sell more effectively than their peers to create higher returns, whilst passive investors will accept the return of the market.So, can these active fund managers deliver higher returns for you consistently over the long term? Let’s see what evidence there is.In the USA, numerous studies have been conducted to see if this can […]

Full Article At: KnowHow-Now.com Articles

Bookmark to: