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Beating The Market Is A Losers Game

Very few professional fund managers can beat the market. Since there is no reliable way to identify the
fund managers who will outperform the market, investors are best served by buying a broad spectrum of
stocks at lower cost. Index funds fit the bill perfectly. Since index funds buy and hold stocks, rather than trade actively, (in order to simply mirror the performance of a particular stock index), index funds have far lower trading costs and lower capital gains tax bills.

There is no need to waste time checking the unit trust quotes. Was the market up yesterday?
If so, your index funds most likely were too.

As the owner of index funds you will own all the most successful companies in the world.
This means whenever you get an earful from your colleagues about their latest hot stock pick,
you can nod knowingly and say, "Yes, I own that one, too."

 

 

 

 

 

 
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