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WHENEVER one writes about the failure of active managers to beat the index, someone is bound to pop up online and argue that people don't pick fund managers at random.
They think they should be low-risk, but if you're looking at investing over a 25- or 30-year period you can afford to take risks.' He believes the best way to boost the performance of your fund is to pick fund managers that have consistently increased the value of their funds, such as Neil Woodford (from Invesco), Nigel Thomas (Axa Framlington), Adrian Frost (Artemis) and Ian McVeigh (Jupiter).
Pick fund companies that have shown they're willing to close funds before they get too large.
My broker tells me he can pick stocks, time the market and pick fund managers likely to outperform.
Is your "investment professional" a better stock picker than Bill Miller? 4. Can you rely on your "investment professional" to pick fund managers who will outperform Bill Miller? 3. Would you have been critical of your "investment professional" at the end of 2005 if he or she recommended that you invest in the fund managed by Bill Miller 2. Whatt is the standard deviation of your portfolio?
Similar(52)
Taxes are similarly damaging, and investors are wise to pick funds that keep annual tax bills to a minimum.
Some managers question whether it even makes sense to pick funds on the basis of their having not lost money in the last 10 years.
That's the opposite of what an investor might have expected by using Morningstar's ratings to pick funds at the beginning of that bull market.
It's possible to pick funds that can go long and short at the same time, gain only in bear markets or are market-neutral — producing a small return in any market climate.
Now it's almost as tough to pick funds.
Some people pick funds with a rearview mirror.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com