What Can Investors Learn from Academia? - Show 272

Thursday, May 10, 2018 3,475 views

Broadly speaking there are three different types of fund you can invest in — passive funds, active funds, and funds that give you exposure to specific factors, sometimes known as factor funds. The evidence is clear that actively managed funds are not worth paying for.  Many investors choose instead to invest entirely in passively managed index funds that track an entire market. But, for those who are willing to accept more volatility, there is a case for trying to beat the market using factor funds.

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