Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

3 Reasons Investors Still Buy Actively-Managed Funds

TedTed
edited May 2015 in Fund Discussions
FYI: As has been widely reported in the financial media, 2014 was one of the worst years in recent memory for active managers.
Regards,
Ted
http://www.marketwatch.com/story/3-reasons-investors-still-buy-actively-managed-funds-2015-05-01/print

Comments

  • Yet none of these articles ever mention that investors who invest in actively managed funds are 'active' themselves and that they don't stay with their actively managed funds when their performance starts to falter. To each their own.

    "Think about how stupid the average person is and then realize that half of them are stupider than that."
    - George Carlin
  • @Mark: Amen !
    Regards,
    Ted
  • edited May 2015
    Mark makes a very good point. Maybe I'm wrong, but my sense is we have very few "stay-put" type investors posting on this board. There's one notable exception (And I'd rather not go there, thank you.)

    Don't mean to suggest we're a bunch of highly active market timers. That I don't know. On the other hand, I doubt many here have held mostly the same funds year-in and year-out for 15 - 25 years or longer without at least varying the allocations to each. I'll confess I haven't.

  • hank said:

    Mark makes a very good point. Maybe I'm wrong, but my sense is we have very few "stay-put" type investors posting on this board. There's one notable exception (And I'd rather not go there, thank you.)

    Hi hank,

    I am a "stay-put" investor. Leaving out bonds in my retirement accounts and internationals where I like to go active, for the most part, my returns are inevitably superior with passive index funds. I have a few exceptions like a Primecap Managed fund, but my exceptions are far and few between.

    I have never learned how to time the market, which to me is synonymous to being "active", so the best I have learned is that if I want to gamble with some percentage of my portfolio, and I do, the ER will not be over 50 basis points. The least I can try to do is put some odds on my side.

    Best Regards,

    Mona


Sign In or Register to comment.