Are you cheated? If you have already heard the advice of a financial planner or invested in a mutual fund, because you think that managers are doing a better job, you will be deceived, maybe even more than once.
I realize that the above statement is harsh, especially if you happen to be a financial planner, but facts and research support my statement. This is not new information. A professor named Michael Jensen published a study in the 1968 Journal of Finance. In the study of mutual funds, he found that the average mutual fund managed by professional managers could not beat the market and mutual fund models. Performance is unpredictable whether it is better than the market or poor performance.
Studies since 1968 have reached similar conclusions. This means that it is not good to work with funds that have outperformed the market in the past, as recent results do not accurately measure future performance.
Long-term results show that even the best fund managers will eventually execute the market based on the fees charged by the fund.
You might tell yourself that some managers have beaten the market, and managers like Warren Buffett immediately think of it. Although Barth's Berkshire Hathaway did perform very well in his early years, the results of recent years have not kept up with the S&P 500.
I don't want to take anything from Warren Buffett. His record is self-evident, but most of his success comes from buying good companies at high prices and then holding them for a long time. This is a strategy that anyone can use, without paying a high fee to the manager, and without paying a management fee, your money will grow at a higher interest rate.
In fact, if you are not interested in choosing stocks, then the simple strategy of investing in exchange-traded funds will mimic the market index and provide better returns over the long-term.
Don't fall because of the big lies in investing in mutual funds. Responsible for your investment and reward yourself, not for fund managers who outperform you in terms of investment.
Orignal From: Big lies in investing in mutual funds
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