"In the past 10 years, out of 6000-plus professionally managed mutual funds, only about 20 were able to beat the 10-year performance of the S&P 500 after expenses and fees. They deserve honorable mention.(Just because they made the list this year doesn't guarantee that they will continue to be on the list)."
Whenever I mention this short list of winners, people always perk up ,for the wrong reasons. The lesson is that 5'980 other rabbits, racing with all their might couldn't outpace the lowly tortoise. The risk of picking the right rabbit in 6,000 is ridiculous compared to the no-brainer of simply placing your bet on the tortoise. In stock market terms, what is the tortoise? It's the S&P 500.By now, you've heard of index funds. One of the most popular index funds is a special mutual fund made up of all 500 stocks in the S&P 500, what a great concept. If you can't beat the market, then buy the whole market. Bet that the entire market will continue to go up.....in the long run, of course. There are so many advantages to investing in index funds compared to the average professionally managed equity mutual fund. For the average unsophisticated investor, the no-brainer approach is to buy a few carefully selected index funds and forget about them. Here's the answer to another of the three critical questions. Which stocks should I buy? the answer is all of them.Buy an index fund made up of all the stocks in the market. Odds are with this approach you'll do just as the vast majority of professional fund managers and perhaps much better. You don't have to agonize for months over which stocks to buy and when.For more information please Click Here!
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