As seen in the chart below, most investors would be better off
owning simple index funds than paying mangers to pick stocks and bonds.
Not exact matches
But if you've never invested on your
own before — or if you have a friend or family member in that situation — download our white paper and learn how you can get started in
indexing investing with a
simple 0ne - fund solution.
My take was
simpler: you need to worry less about whether your active fund is going to trail some
index by 0.9 % annually and worry more about whether you will, yet again, insist on being your
own worst enemy:
In fact, Capitaland and SMRT are just two of the thirty companies you can
own by buying something as
simple as a Straits Times
Index ETF.
The
simple solution is to track the total return of the
indexes (or
index funds) against your
own holdings on a one - to - one basis.
I've been an advocate of DIY investing for some time, and I still believe many investors with uncomplicated situations are capable of managing a
simple index fund portfolio on their
own.
How to invest: The
simplest, lowest - cost route is to
own an
index fund that holds a broadly diversified portfolio of REITs.
While many Canadians are happy to
own simple ETFs that track major
indices, such as the S&P / TSX Composite
Index, many would be surprised to learn that they're not always getting the plain ETFs they expect.
The good news is that
index investing is actually quite
simple, and for most people, knowledge of the basics is enough to make your
own investment decisions.