ASK YOURSELF IF YOU SHOULD BE INVESTED WITH AN ACTIVE MANAGER OR A PASSIVE INDEX FUND

February 8, 2013

The Underperformance Gap: 

  • Most investors do substantially worse than the mutual funds they invest in
  • Investors sell funds that underperform for 2-3 years
  • Investors switch to funds with several years of outperformance
  • Sell low/ buy high strategy is sure fire recipe for subpar results

If you can’t tolerate sticking with a manager who isn’t doing well, even if they have a great long term record- then go with a passive index fund. If you are willing to stick with a manager you believe in- stay actively invested.  

Watch this Episode


Tagged with:

Back to Top