bkweathe
bkweathe t1_j6mipdy wrote
Reply to comment by Rave-Unicorn-Votive in Are index funds really better than manage funds? by Catchthedisc
Perhaps your managed fund has done a bit better, but past results are not an indicator of future of returns, so no one knows if it does better
bkweathe t1_j6m78gw wrote
Research shows that actively-managed funds beating comparable index funds is a matter of not many, not by much, & not for long.
Not many actively-managed funds beat comparable index funds over any particular time period. Usually fewer than 20% in a year. Even fewer for longer time periods.
The actively-managed funds that do win usually don't win by much. Those that lose usually lose by a lot more.
The actively-managed funds that do win usually don't win for long. The percentage of funds that wins in one time & then wins again in the next time period is about what would be expected based on random chance. So of the 20% or so that win one year, only about 20% will win again the next year. In other words, they probably won because of luck, not skill.
Standard & Poors published their Index vs. Active report and their Persistence report every 6 months; they document these points very consistently
bkweathe t1_j6m5iwu wrote
Reply to comment by 84740296169 in Are index funds really better than manage funds? by Catchthedisc
Rarely. When they do, it's usually not by much & not for long
bkweathe t1_j6m5d8w wrote
Reply to comment by Catchthedisc in Are index funds really better than manage funds? by Catchthedisc
With an index fund, thousands of someones are minding the store & we investors don't have to pay them
bkweathe t1_j6m51a3 wrote
Reply to comment by Catchthedisc in Are index funds really better than manage funds? by Catchthedisc
Check the fund profile online. It will tell you the fund's returns over various time periods (always reported after expenses, by law) & the returns of the fund's benchmark (usually an index).
The profile will also disclose the fees, including the expense ratios, loads, 12b-1 (marketing) fees, etc.
bkweathe t1_j6nuh43 wrote
Reply to comment by Catchthedisc in Are index funds really better than manage funds? by Catchthedisc
Forgot the mention: you should have been offered a prospectus for each fund before you bought it. Each fund should also provide an annual report. This information should be in these documents, too