Quote Of The Week: When Funds Beat The Index

race usain bolt“… don’t rush to brush off all actively managed funds. Although the typical active large-company U.S. stock fund lagged (the) Index …, “above average” funds fared better, according to a new Morningstar study. In fact, cheap actively run funds … beat Vanguard 500 over the past ten, 15 and 20 years.

Nellie S. Huang, “No More Plain Vanilla,” Kiplinger’s Personal Finance, February 2013

 The takeaway:  It’s important to pay attention to investment expenses, but don’t assume that an inexpensive index is always, or even usually, the best investment choice for your portfolio.

It depends not only on the particular asset class (an index is more suited to certain markets and less suited to others), but also on your stomach for risk, as well as whether a human being can add value by differentiating a good investment opportunity from an opportunity you would do well to pass up.

We actively sift through thousands of available investments to compare and contrast funds, indexes, and ETFs – after fees – to pick the right ones for you.

We believe the best mix may indeed be just that; a mix of actively managed and indexed strategies, keeping costs low but performance high.



About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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