Index funds are more popular than ever—here's why they're a smart investment

  • 📰 CNBC
  • ⏱ Reading Time:
  • 44 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 72%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Index funds are more popular than ever—here's why they're a smart investment. (via CNBCMakeIt)

. "If returns are going to be seven or 8% and you're paying 1% for fees, that makes an enormous difference in how much money you're going to have in retirement."

Second, index funds tend to perform better over the long term than actively managed funds, making them ideal for people investing for retirement. It's incredibly hard for a person to pick stocks that will beat the market and even harder to do so consistently over decades.. "While a fund manager may outperform for a year or two, the outperformance does not persist," CNBC reported.

Where active funds theoretically have a leg up is during periods of market volatility. The theory is that the managers will be able to shield their investors from some of the market's deviations. But that wasn't the case in 2018, for example, when managers still under-performed indexes, despite a rocky fourth quarter.

For the everyday investor looking to build wealth long term, that all adds up to make low-cost index funds a go-to investment.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

MakeIt and why is that ?

MakeIt Lower expenses and consistent returns.

MakeIt LIES!

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines