The Advantages of Passive Investing via Index Funds

Welcome to Tip’d, a social media site for finance, investing, and business topics. Want to participate? » Join Tip’d now! or read our FAQ.

Tip It

The Advantages of Passive Investing via Index Funds

Posted by ObliviousInvestor 1074 days ago, popular 1074 days ago (http://www.obliviousinvestor.com)
Category: Personal Finance | Tags: expenses index funds mutual funds

Common sense math tells us why index funds have a historical record of beating the majority of actively-managed funds. (Hint: It comes down to costs.)

7 Comments addto

Save & Share Topple

Spam? Topple this!

Comments Who Tip'd

Comments

pimpyourfinances 1074 days ago

Great math examples. I love the "pick a piece of paper" analogy too.

ObliviousInvestor 1074 days ago

Thanks David. :)

BradleyJohnson 1074 days ago

There are even more compelling reasons as evidenced by recent fund performance. Looking at a 5 or 10 year performance doesn't tell you much if you have a serious economic change, which has happened pretty regularly in history.

MoneyNing 1074 days ago

I've seriously been thinking about this. Nevermind the outperformance argument but the no hassle part of index funds is really winning me over. I might just have to start buying index funds (or ETFs)

MoneyWise 1073 days ago

Index Funds Sure make sense.Moreover, When the Oracle of Omaha swears by them, they better be worth it

jimmyatkinson 1073 days ago

"The Bogleheads' Guide to Investing" is a great book about index fund investing, for those of you wanting to read more.

ObliviousInvestor 1073 days ago

Indeed, or Bogle's "Little Book of Common Sense Investing."

Want to leave a comment on this story? Login or join Tip'd to comment.

A community for financial news, ideas, and tips