Tuesday, February 09, 2010

Endorsement of indexed funds

Read this article.
Posted by at

3 comments:

Anonymous said...

Burton shouldn't worry about the rich. Let them splurge on the fund managers so that the fund managers can say they can beat the market.People like Tierney makes his living by tell the rich he can beat the market otherwise the high fees are not justifiable. Unfortunately, the poor also want to imitate the rich and of course with the helpfool help from their insurance salesmen who graduated as investment expert after taking the tikam tikam cert in ILPs.
There are many of these investment experts in ntuc. They help to time when to put your money and when to get out.Their argument is many gurus teach when to get in but they don't teach when to get out, NTUC agents know.They have a fengshui master to help them.

February 10, 2010 11:14 PM
Anonymous said...

There are index funds and there are index funds.

During the worst 10 years of US stocks from 1999 to 2008, the S&P500 index itself returned -1.47%pa (this is inclusive of re-invested dividends). For richer people with access to more "fundamentally" constructed and globally-diversified index funds such as DFA Funds, a 80% stocks and 20% fixed income mix will have generated 4.52%pa for the same 1999 to 2008 time period. This is even inclusive of a maximum 0.9%pa wrap fee for the FA.

The above returns are for lump-sum investment back in 1999. If a person had Dollar-Cost-Averaged, then the returns will be slightly better than the above.

Most retail investors will not even get the low returns of the S&P500 over the last 10 years, due to (1) emotions, (2) high costs of active funds, and I think worse of all (3) lousy advice by so-called financial advisers or planners which are often more churning and twisting than anything else.

February 11, 2010 1:19 AM
Anonymous said...

A lot of stock brokers in ntuc. The agents really believe in active trading under the guise of active management. These salesmen will advise on buy and sell. They even provide 'analysis'.

February 11, 2010 10:09 AM

Post a Comment

Subscribe to: Post Comments (Atom)

Blog Archive