Submitted by Catchthedisc t3_10pe5np in personalfinance
plowt-kirn t1_j6jvojn wrote
Studies have shown that most active managers underperform their targets (net of fees) over the long term.
If it’s a small percentage of your overall assets and if it makes you feel better, go ahead. But I wouldn’t put more than 5-10% of my long term assets in actively managed funds.
luvz2splooge_69 t1_j6mux07 wrote
I believe it’s 80-90% of active funds underperform the indexes after fees, etc. Plus your tax liability is going to be higher with an active fund
[deleted] t1_j6mux8g wrote
[deleted]
Catchthedisc OP t1_j6jwu4s wrote
Thank you. I does make me feel better to have 1 fund where someone is minding the store. I hear you on keeping it a small part of my portfolio.
bkweathe t1_j6m5d8w wrote
With an index fund, thousands of someones are minding the store & we investors don't have to pay them
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