90% + of managed mutual funds underperform their index
John Bogle, the originator of the concept of index investing, and the founder of Vanguard, the second largest fund manager in the world (US$ 4 Trillion under management), died this week. Bogle’s approach to investing has been proven right. According to Standard and Poors Index versus Active (SPIVA) analysis, 90% of Canadian managed equity mutual funds underperformed the stock market over the past five years, mainly because of high fees.
Here, from the New York Times, are five key pieces of investing advice from John Bogle that any investor can implement.
- Stay the course
- Beware the experts
- Keep costs down
- Don’t get emotional
- Own the entire stock market
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