No actively managed stock or bond funds outperformed the market regularly over the last five years. Index funds have generally been better.
Writing for The New York Times, Jeff Sommer, explained the results of a recent study of actively managed mutual funds conducted by S&P Dow Jones Indices that concluded "not a single mutual fund — not one — managed to beat its benchmark
in either the U.S. stock or bond markets regularly and convincingly
over the last five years."
"These findings support practical advice that has been the academic consensus
for decades. Forget about trying to beat the odds and outsmarting
everybody else. Instead, use low-cost stock and bond index funds that
mirror the overall market, and keep them for decades."
In summary, "most actively
managed mutual funds do worse than their benchmark index, both over the
long run and in the vast majority of calendar years, in the United
States and elsewhere around the globe."
Bottom line: Invest in low-cost index funds and Exchange Traded Funds (ETFs).
No comments:
Post a Comment