How To Stop COVID-19 From Derailing Your Retirement
Justin Kuepper
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Let’s take a look at a few key pieces of advice to stop...
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If the length of a fund manager’s tenure is related to their ability to provide superior performance, then it should be a factor in explaining the size and persistence of fund returns. Unfortunately, as is true with much of the “conventional wisdom” about the mutual fund industry, the data simply doesn’t support the belief.
They began by focusing on the careers of mutual fund managers who are in sole control of their funds. To avoid the problem of survivorship bias, their study covers the period from 1996 through 2008. The data set incorporated 2,846 funds and 1,825 managers, and included 195 funds with managers that had at least 10 years of experience (6.9 percent of the total). Their research resulted in three key findings:
The authors concluded: “The key to a long career in the mutual fund industry seems to be related more to avoiding underperformance than to achieving superior performance.”
The bottom line is that this study provides further evidence against active management as the winning strategy. Rather, the winning strategy is to use passively managed funds to implement your financial plan. Passively managed funds, as a category, include not just index funds, but also funds whose construction rules are transparent, systematic and based on historical evidence.
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
Let’s take a look at a few key pieces of advice to stop...
News
Iuri Struta
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Most equities have continued their rally these past two weeks, along with investment-grade...
Aaron Levitt
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While tax-gains harvesting takes some planning to implement, it can help save investors...
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
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Justin Kuepper
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Daniel Cross
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Sam Bourgi
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If the length of a fund manager’s tenure is related to their ability to provide superior performance, then it should be a factor in explaining the size and persistence of fund returns. Unfortunately, as is true with much of the “conventional wisdom” about the mutual fund industry, the data simply doesn’t support the belief.
They began by focusing on the careers of mutual fund managers who are in sole control of their funds. To avoid the problem of survivorship bias, their study covers the period from 1996 through 2008. The data set incorporated 2,846 funds and 1,825 managers, and included 195 funds with managers that had at least 10 years of experience (6.9 percent of the total). Their research resulted in three key findings:
The authors concluded: “The key to a long career in the mutual fund industry seems to be related more to avoiding underperformance than to achieving superior performance.”
The bottom line is that this study provides further evidence against active management as the winning strategy. Rather, the winning strategy is to use passively managed funds to implement your financial plan. Passively managed funds, as a category, include not just index funds, but also funds whose construction rules are transparent, systematic and based on historical evidence.
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
Let’s take a look at a few key pieces of advice to stop...
News
Iuri Struta
|
Most equities have continued their rally these past two weeks, along with investment-grade...
Aaron Levitt
|
While tax-gains harvesting takes some planning to implement, it can help save investors...
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...