Mutual Funds - The Mutual Fund Fallacy: Why Mutual Funds Are The WORST Investment PERIOD!

[Quixote1818]

#t=55

[nenagh]

1. Thank you Quixote1818...

I've bookmarked it for later... and have a lot to learn..

[Quixote1818]

2. Read this too!

Snip:

A new white paper by Portfolio Solutions and Betterment, "The Case For Index Fund Portfolios,"pretty much solidifies all we've ever known or guessed about low-cost, passively managed index funds –– they can rarely be beaten.

Looking at advanced portfolios holding 10 asset classes between 1997 and 2012, researchers found index fund portfolios outperformed comparable actively managed portfolios a staggering 82% to 90% of the time. And the longer investors held those investments, the better shot they had at outperforming active funds over time.

Still not convinced? Even lowering the cost of actively managed fund portfolios couldn't offer a boost significant enough to outperform index funds, the researchers found.


“The outcome of this study statistically favors an all-index fund strategy, all the time," the report says. "The probability of outperformance using the simplest index fund portfolio started in the 80th percentile and increased over time and with additional asset classes. These results have significant and practical implications for investors who seek a strategy that can give them the highest chance of reaching their investment goals.”

Read more: http://www.businessinsider.com/index-funds-beat-actively-managed-funds-2013-6#ixzz2vVlDjSiQ



http://www.businessinsider.com/index-funds-beat-actively-managed-funds-2013-6#ixzz2vViFo4o4

[nenagh]

6. Very kind of you...

thanks

[kyburbonkid]

3. Can capitalism and socialism co-exist?

I followed the first video and basically it says what is wrong with Mutual funds are the fees, the management fees that yearly take a 1-2% bite out of your investments. So, instead go with a brokerage firm and put an *all-in* on index funds. Well that advice is umm average. Many mutual funds are just like index funds, but usually with a distinct focus area. The first video is all BS. You can take a long term position, but you need to flow in and out of the market it like water when big forces are showing. Anyway, I guess my advise is to learn and be active with with your funds (index or Mutual) but slow with moves for long term. If your doing Mutual funds be a sloth. The 2008 crash was beaconed for a year about the state the mortgage industry. Play for 6 months in advance with a long view and funds will do fine (mostly .

Anyway to the point, In the first video, if you follow his links he holds the rightwing position that the USA, "being a Socialist welfare state", will collapse under the weight of all of the welfare it gives out for free. He hold the position that the "Welfare State will bring the downfall of America". I'm sorry, I don't hold such a low view of the American structure. The abundance society dot com seems to be another one of those financial right wingers that hold the position that it is better to push people into a Somalian poverty level of desperation that into a welfare system of subsistence (some how this will help them financially is the logic) How far do modern Republicans want people to live in poverty? The Democrats should be proud that they built a social safety-net that helps people get on their feet. There a plenty of Billionaires that just need to be taxed and carry a heavier burden of the countries needs.

Anyway, I haven't watched the other videos because the first one was such BS and his website/blogs so pro wall street that it drowns out any calls for liberty, justice or an American way. Is this greed 101?

[Quixote1818]

4. This is from Business Insider, a liberal website

Last edited Sun Mar 9, 2014, 08:48 PM - Edit history (1)

Not just the fees, they out perform Mutual Funds 80 to 90% of the time.



http://www.businessinsider.com/index-funds-beat-actively-managed-funds-2013-6#ixzz2vVlDjSiQ


I am trying to figure out your reasoning because Wall Street HATES people avoiding fees. Mutual funds are one of the classic ways Wall Street has dreamed up to extract money from people for zero extra benefit.

Snip: Two of Wall Street's best inventions of the past half a century are the low-cost index mutual fund and its younger relative, the commission-free index exchange-traded fund, or ETF. But ironically, Wall Street hopes we won't use them.

http://www.marketwatch.com/story/13-reasons-index-mutual-funds-and-etfs-rule-2013-07-24

And here is Warren Buffett on index fees:

[kyburbonkid]

5. QUESTION: Why socialism is bankrupting the USA

Financial experts are always changing there minds. Some funds do good, some do bad, some over charge. The advise of investing in an Index is just pissing in the wind for most people.

The fist video comes from; http://theabundancesociety.com. They own the phrase "Empowering People With The Wealth
Creation Secrets Of The Top 1%". Sounds promising, but his latest blog is "Why Socialism Is Bankrupting Our Future…" which reads like something out of a Paul Ryan stump speech. I'm sorry, but I totally disagree with that concept in it's entirety.
Some forms of socialism have to co-exist with capitalism or capitalism is doomed to fail and push society into anarchy. That's the way I see it. When you read that blog, you get the opinion that the affluent feel burdened by the tax system that provides food/shelter and DIGNITY to poor. That blog entry reads like a typical rightwing position paper.