Active management rarely beats the market from "summary" of Common Sense on Mutual Funds by John C. Bogle
The idea that active management rarely beats the market is a critical concept for investors to understand. Many investors are drawn to actively managed funds by the promise of outperforming the market and achieving higher returns. However, the reality is that the majority of actively managed funds fail to beat their respective benchmarks over the long term. This phenomenon can be attributed to a number of factors. One key reason is the higher fees associated with actively managed funds. These fees can eat into investors' returns and make it even more challenging for fund managers to outperform the market consistently. Additionally, the constant buying and selling of securities by active managers can re...
Similar Posts
Seek professional advice if needed
When it comes to investing, seeking professional advice can be crucial in helping you make informed decisions. A financial advi...
Investing in yourself is the best investment you can make
The idea that investing in yourself is the best investment you can make is a powerful concept that has stood the test of time. ...
Monitor your investments regularly
The key to successful investing is to keep an eye on your investments. You can't just buy a few stocks or mutual funds and forg...
Plan for both shortterm gains and long-term growth
To succeed in the stock market, you must have a clear plan that accounts for both short-term gains and long-term growth. While ...
Study economic and political conditions of countries
To truly understand a country's investment potential, one must delve deep into its economic and political conditions. These fac...
Taking calculated risks can lead to higher returns in the stock market
Taking calculated risks in the stock market is a strategy that many successful investors employ to achieve higher returns. By c...
Take advantage of taxefficient investment strategies
To make the most of your investment returns, it’s important to consider the impact of taxes. Taxes can significantly eat into y...
Focus on the longterm
When it comes to investing, focusing on the long term is crucial. It is a simple concept, but one that is often overlooked or m...