Quote:
Originally Posted by 8k3
I agree, day trading on ones own without really knowing the ins and outs of the market is not wise. You mentioned investing in total market funds S&P 500 as an example? You seem to allude to the idea that managed funds, such as mutual funds, do not perform, is my understanding correct?
|
Mutual funds and ETF's that are
indexed tend to do very well because they have low cost and they are tracking market returns (hence their name).
Mutual funds and ETF's that are
actively managed (trying to outperform the markets through stock-picking) have the potential to outperform the market, but the majority of the time they underperform. The same argument holds true for individual stock-pickers and day-traders.
If you click on the link that i provided, you can see research (conducted by the S&P) which proves this.