Ditch the manager and pick up a tracker fund
Thursday, 13 May 2010
So said Charlotte Beugge of the Daily Mail.
Millions of investors would be better off ditching expensively managed funds and opting for cheap stock market trackers.
Many of Britain's biggest funds are simply closet trackers, but their high charges mean investors get smaller returns.
Active fund managers are supposed to aim to beat the stock market by clever stock picking. Yet few UK funds outperform the FTSE index, whether it is rising or falling. The story is similar with overseas funds.
'All the evidence shows it is difficult for a manager to outperform an index consistently,' says Nic Round, of independent financial adviser Murray Round. 'Costs make it nigh on impossible, so why should investors bother to speculate on the skills of an active fund manager when a passive, index tracker takes away that risk?'
posted by Murray Round Wealth Management @ 11:06,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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