Scott Francis has written another article for Alan Kohler's Eureka Report. The article highlights that investing through index funds and ETFs, with a focus on growth areas, means working with the market, not against it.
The article points out the failures of active management based on reasearch including:
Actively managed funds have a strong tendency to underperform the average market return.
The buying and selling undertaken by personal investors destroys investment returns.
Analyst research does not seem to lead to above-average returns for investors.
Poor decision making by investors in determing when into and sell out of asset classes.
The tendency of investors to sell in falling markets and buy in strongly rising markets.
Scott concludes by identifying how investors can avoid these below average market returns. For the details please take a look at the article on our website. Click here.