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"in the long run, your typical investor is going to get the same return with active management with 2% fees as he does with an index fund at 0.1% fees." This p
by aliston 13y ago
"in the long run, your typical investor is going to get the same return with active management with 2% fees as he does with an index fund at 0.1% fees."
This point is extremely contentious. Particularly in the long run, there is a lot of data to show that actively managed funds do not beat market indexes. With fees, they come out considerably behind.
- ams6110 13y agoTrue, but one thing a financial advisor can do is counsel you through market volatility. Absent this, many unskilled investors will fall into a "buy high, sell low" pattern and end up FAR worse off.
- Matt_Cutts 13y agoVanguard does an excellent job of reminding their investors to stay the course, invest for the long haul, and not try to time the market.