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Index funds. As a broad generalization, index funds are superior to managed funds due to higher long-term returns and far lower fees. As another broad general
by teuobk 18y ago
Index funds. As a broad generalization, index funds are superior to managed funds due to higher long-term returns and far lower fees.
As another broad generalization, you can have higher returns than index funds (aka the market) only at the cost of increased risk.
- Devilboy 18y agoI recall reading somewhere that most pro traders can't even beat the common index funds.
- pj 18y agoWell, I think about 75% of mutual funds underperform market index funds that charge fractions of the fees. And those are managed by pros with years and years of training and experience. It's a tough world for the individual. Yes, the risk is higher, but the reward is also higher. One of the first things to learn is your own risk tolerance. That's key.
- zackola 18y ago+1 I'd recommend reading The Boglehead's Guide to Investing. And checking out the forums over here: http://www.bogleheads.org/ http://www.bogleheads.org/ Amazingly intelligent discussion going on.