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Does anyone have a good resource that provides an objective discussion of active funds vs. passive indexing. I believe passive indexing always has its place but during this last bull market I think active funds have been almost shunned. The amount of money flowing into indexed is stunning. Thanks.
A fair number of active funds outperform before expenses but not after / THis suggests its necessary to look for low expenseses.Active funds used to outperform many years ago but Federal regulations that required companies to provide information to all at the same time took away an edge large investors had.AS you probably know cash (particularly at current rates) is a drag on performance in Bull markets but must active funds have a few % in cash in part to avoid having to sell a position because of redemptions. "The real question is how to find active funds that will outperform but selecting winners is very difficult though avoiding dogs is not so hard.
Sorry I can't provide a link but I think what I wrote is objective
Comments
Regards,
Ted
http://executiveeducation.wharton.upenn.edu/thought-leadership/wharton-wealth-management-initiative/wmi-thought-leadership/active-vs-passive-investing-which-approach-offers-better-returns
"The real question is how to find active funds that will outperform but selecting winners is very difficult though avoiding dogs is not so hard.
Sorry I can't provide a link but I think what I wrote is objective