Fund management is often consider in much higher regard than it really deserves. This is especially true of large-cap core equity funds. Most of these funds are ‘closet index funds’ . Which means their portfolio weights for stocks are fairly close to that in the benchmark equity indices. And yet, in recent years, they have … [Read more…]
To assess an index fund, some might turn to last year’s performance, but performance is not the answer. Markets go up and down regardless of how well an index fund does its job. The simplest answer is “tracking error”. Tracking error is the investors’ metric for assessing whether they are getting what they pay for. … [Read more…]
In a market that has dramatic swings from one day to the next, investors must learn ways to diversify their portfolios that will win in any market. With the Covid-19 pandemic battering world markets, equity investors are suffering. The spike in bond yields has resulted in losses to investors of debt instruments such as debt … [Read more…]
The workhorse of equity investing – i.e. mutual funds– is probably past its prime. There are forces at work which may relegate the actively managed mutual fund to being largely a retail investor’s instrument, next to the trusted insurance-cum-investment policy. Savvier investors are likely to move on. Passive is in – The Indexing Revolution Source: … [Read more…]