Advertisements

Tag Archive: Active management


Investing in the stock market is a bit counter-intuitive. It would seem that the investor that puts in more time and effort managing bloghis investments should have an edge over other investors. However, this extra effort actually can create serious problems. A more hands-off strategy typically works out better for most investors. This is the power of passive investing.

Active vs. Passive Investing

An active investor is trying to get above average market returns by constantly buying and selling stocks. He hopes to find the most profitable stocks on the market through research and market timing. The problem with this is that only half of investors in the stock market can be above average each year. If your picks go wrong, you can earn less than the average return of the market. Continue reading

Advertisements

The Investment Style

Sometimes you like a book to the point that you would like to read it again, Came across an  interesting extract from one of my favorite imagesbook Trader Guns and money, ..The fund managers had their own papal fashions which is called as investment styles,

Style :                     Index Fund

Meaning :           The fund manager invests to match some  index like S&P 500

Reference :          The fund manager has give up trying to beat the market.

 

Style :                    Active Management

Meaning :           The Fund manager picks up stock that willdo better than the market

Reference :          The triumph of hope over experience. You the investor are paying for the experiment. Continue reading

Guest post: The Power of Passive Investing

images-1Investing in the stock market is a bit counter-intuitive. It would seem that the investor that puts in more time and effort managing his investments should have an edge over other investors. However, this extra effort actually can create serious problems. A more hands-off strategy typically works out better for most investors. This is the power of passive investing.

Active vs. Passive Investing

An active investor is trying to get above average market returns by constantly buying and selling stocks. He hopes to find the most profitable stocks on the market through research and market timing. The problem with this is that only half of investors in the stock market can be above average each year. Continue reading

Active investment still has some active defenders, And digging into the reasons for active funds’ persistent problems, itA is easy to see why. Despite the claims of the Efficient Market Hypothesis (EMH) that it is impossible to beat the market other than by luck, it appears that an impressive number of managers do achieve the feat.

The problem is that they do not manage to beat the index by enough to be able to pay themselves and still pass on a decent performance to their clients. In other words, to quote Jack Bogle, the founder of Vanguard and the spiritual father of index investing, the case for passive investing rests on the CMH (Cost Matters Hypothesis), not the EMH. Continue reading

All about Fund Managers

As human beings, we are emotional, impressionable, and often a lot less savvy when it comes to investing than we think.selling-winners-and-holding-onto-losers That can spell disaster for portfolios. More than 80 percent of actively managed U.S. stock funds under performed the market reported by S&P..so a brief description on papal fashions – The investment styles :-

  • Style :                     Index Fund
  • Meaning :           The fund manager invests to match some  index like S&P 500
  • Reference :          The fund manager has give up trying to beat the market. Continue reading
%d bloggers like this: