FYI: Let’s say you round up a bunch of index fund investors. Like a shepherd with a nipping Border Collie, you coral them into a gated pen. Next, you corner investors in actively managed funds. They’re a different breed. So you don’t want to mix them.
“Why do you invest in index funds?” you ask the first shaking lot. A spokesperson steps forward. “Costs are low,” she says. “And we don’t believe people can pick winning funds ahead of time.”
You step over to the other pen. “Why do you buy actively managed funds?” you ask. This group impresses you. They seem more confident. But their answers vary. “Our advisors tell us which funds to buy and when,” some shout. Others yell, “We have the skill to choose great managers
Regards,
Ted
http://assetbuilder.com/andrew_hallam/are_index_fund_investors_simply_smarter
