As others state, find the fees. And then realize one or two percent may not seem like a lot...but that's actually a fee that directly impacts what you are actually gaining. If you have a 2% fee, and the fund goes up 6%... you've paid 30% of your gain in fees.
These of course are not real numbers, just used for a basic example.
With long term investing of course, that ratio becomes catastrophic.
This is where the minute or zero fees of common index funds really shine.
Also these past few years have been pretty wild with the massive gains since 2016 and then the relative drop these past couple years.
tombiowami t1_j6mjtfs wrote
Reply to Are index funds really better than manage funds? by Catchthedisc
As others state, find the fees. And then realize one or two percent may not seem like a lot...but that's actually a fee that directly impacts what you are actually gaining. If you have a 2% fee, and the fund goes up 6%... you've paid 30% of your gain in fees.
These of course are not real numbers, just used for a basic example.
With long term investing of course, that ratio becomes catastrophic.
This is where the minute or zero fees of common index funds really shine.
Also these past few years have been pretty wild with the massive gains since 2016 and then the relative drop these past couple years.
But yea, it's all about the fees.