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"Whatever bad things happen with buying index funds, things are worse with actively managed funds".
"A lot of people thought that when they were buying index funds they were diversifying," said Irwin Michael, portfolio manager at ABC Funds, a Toronto mutual fund firm.
The authors are huge fans of buying index funds, but they add that "indexing does not mean that an investor should hold only an S.& P. 500 Index fund or a total stock market fund".
Everybody was buying index funds and Nifty Fifty funds.
Should they embrace the wisdom of the crowd by only buying index funds?
Investors can save themselves substantial fee money buying index funds on growth and value segments of the market.
Similar(47)
If you want to invest in your home market more cheaply than paying for a manager to pick stocks, buying index-tracker funds or exchange-traded funds (ETFs) investing in the FTSE 100 can be another option.
"They'll buy index funds for the long term, and they'll diversify.
Now Citi could get an even bigger boost, from investors who have no choice but to buy: index funds.
Even many of those who took the safe route and years ago bought index funds have seen little upside.
The book says investors should simply buy index funds, because no stock picker can topple the law of averages over long stretches of time.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com