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SpaceNoodle@lemmy.world ⁨1⁩ ⁨week⁩ ago

• Tehdastehdas@lemmy.world ⁨1⁩ ⁨week⁩ ago

  Usually index funds outperform active investors.

  en.wikipedia.org/…/A_Random_Walk_Down_Wall_Street

  cnbc.com/…/heres-when-active-mutual-funds-tend-to…

  • Investors generally fare better in index mutual funds and exchange-traded funds versus their actively managed counterparts.
  • The average investor pays about five times more to own an active fund relative to an index fund. This makes it tougher for active funds to outperform index funds, after fees.
  • However, the lowest-cost active funds tend to beat the average index fund in categories like junk bonds, foreign stock and global real estate.

  source

  • SpaceNoodle@lemmy.world ⁨1⁩ ⁨week⁩ ago

    Define “active investors.”

    source

    • Opinionhaver@feddit.uk ⁨1⁩ ⁨week⁩ ago

      Buying and selling stock based on short term value fluctuations.

      source

      • SpaceNoodle@lemmy.world ⁨1⁩ ⁨week⁩ ago

        Right so that’s exactly what the conversation is recommending against. I’m paying his guy to identify and make good long-term investments, not make knee-jerk decisions because some asshole pooped his pants funny yesterday.

        source

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