Mbodell Posted January 29, 2008 Report Share Posted January 29, 2008 When 80-90% (or some high and impressive number, dont sue me over this) of the mutual funds underperform S&P 500 an index that is easily available for anyone to buy I have a very hard time believing rich conspiracy theories. The conspiracy is about selling worthless stock to mediocre investors like you and me. The rich bastards don't waste their own money on equity funds. Dunno if it's true but that was the consiracy theory I heard. The other main reason most (80% iirc) funds lose to the market is because of fees. Most managed funds have fees ranging from 1 to 5%. It is hard (some say impossible) to beat the market by more than the fees. Quote Link to comment Share on other sites More sharing options...
P_Marlowe Posted January 29, 2008 Report Share Posted January 29, 2008 <snip>The other main reason most (80% iirc) funds lose to the market is because of fees. Most managed funds have fees ranging from 1 to 5%. It is hard (some say impossible) to beat the market by more than the fees. Yes. If you dont want to invest a lot of time in searching, and checking and shifting after a certain amount of time,it is usually best to invest in a index fund, which wins /loses proportional to the wins / loses of the DOW, orwhich ever index you did choose. With kind regardsMarlowe Quote Link to comment Share on other sites More sharing options...
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