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bostonerimus wrote: »So why not do what Vanguard does and just put limits on trading. I think the "advisor wall" is to keep an air of exclusivity and to keep the admin overhead down by not having to deal directly with the retail investor.
Vanguard proactively contact their clients and reassure them during times of market volatility? Not seen this offering yet - can you please send a link?0 -
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Deleted_User wrote: »Call me a sceptic. Guess what happens to non-performing funds? They don’t attract money. Then they are shut down. Then they can claim that the surviving funds “outperform”.
In the real world we know for a fact that the vast majority of actively managed funds underperform.
Theirs aren't active funds0 -
Given that for UK investors active funds outperform passive by 0.65% a year on average that'd still make active preferable.
It's worth looking more closely because as might be expected the passives did better on average for the US, so passive US and active elsewhere might be sensible.
How on earth can the average active fund outperform the market - they are the market?
I'm not sure where active might make sense but open to suggestions.....0 -
MoneyGeoff wrote: »
It's US data but even if you reduce the growth it still looks easily doable.
What's the underlying assumptions though? 30 year US Treasuries currently only offer 2.95%. Relying on equities to perform to a level to fulfill the shortfall is somewhat optimistic.
PS. I'm ignoring currency fluctuations.
30 year UK Gilts only offer 1.49% by the way. Less than both the rates of CPI and RPI. Suggesting that institutional investors have broader concerns.0 -
BritishInvestor wrote: »Why would you pay one adviser to "manage your money" let alone two? It's a commodity offering - find a financial planner and focus on the genuine added value.0
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BritishInvestor wrote: »How on earth can the average active fund outperform the market - they are the market?
Even combined the active and passive funds weren't the whole market because the work was only looking at funds normally available to UK investors. That's a tiny percentage of the US market cap and not a big cut of most of the rest.BritishInvestor wrote: »I'm not sure where active might make sense but open to suggestions.....0 -
BritishInvestor wrote: »How on earth can the average active fund outperform the market - they are the market?
I'm not sure where active might make sense but open to suggestions.....
Never forget that markets consist of living breathing companies that rise and wane, sometimes turning to dust. Active fund managers can dump dog stocks earlier. Passive fund managers have little option other than to maintain a weighting. If that's what fund mandate dictates.0 -
BritishInvestor wrote: »I agree, but it should happen right after the end of the process, and is the least important part.
For me, that would be a very important part, I would not be comfortable with my money being invested in something I did not understand....no matter how convincing the sales pitch and how grand the claims"We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein0 -
Thrugelmir wrote: »Never forget that markets consist of living breathing companies that rise and wane, sometimes turning to dust. Active fund managers can dump dog stocks earlier. Passive fund managers have little option other than to maintain a weighting. If that's what fund mandate dictates.
Weighting in passive funds reflects that “dog stocks” are underperforming.0
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