Getting Started is our video series aimed at first-time investors, featuring JONATHAN HOLLOW. This time, we look at whether it is worth any investors' while to try their hand at investing in actively managed funds.
TRANSCRIPT
If you want to keep your fees as low as you can and you are happy getting the average return for the market you are investing in, then you definitely should invest in passive funds rather than active funds. Now, if you think you found an active fund manager who really is superior at picking shares and companies and can beat the market, you can have a go at that and invest in active funds.
But as Robin Powell and I show in our book How to Fund the Life you Want, star active fund managers tend to enjoy a streak of luck only for a few years, and then their performance will either revert to the market average or, worse, go below it.
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