So you still want an actively managed fund?

So you still want an actively managed fund?

I made the below chart showing the percentage of actively-managed U.S. stock funds outperforming their benchmarks (i.e. an index fund), as of June 2016:

spiva.png

 

The data for this chart is taken from the SPIVA report. A third party report designed to track how actively managed funds do against the index.

What is the takeaway here?

Trying to pick an active fund that beats the market is hard, like a one in ten chance kind of hard. At least when you bet on black in roulette you have slightly less than a 50/50 shot. I like playing games where the odds are in my favor and this is not a game I would want to play.

Do you own actively managed funds? I help clients transition away from the cost and complexity of active funds and into simple, low cost products. I charge by the hour for this service to ensure maximum objectivity and transparency.

Go ahead and ask, "What does this cost?"

Go ahead and ask, "What does this cost?"

Investing is like grocery shopping (if you have a guide)

Investing is like grocery shopping (if you have a guide)