When judgement calls backfire; How high fees erode returns; If you cannot beat the index...
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30 July 2012
When judgement calls backfire
Smart people are supposed to be able to spot a scam. But looking at the report released this month by the Australian Crime Commission (ACC) and the Institute of Criminology (AIC) on Serious and Organised Investment Fraud in Australia, not all is as it seems.
One of the main reasons why many actively-managed share funds have difficulty matching the index on after-fee terms is the size of their fees. In short, high fees can really erode investment returns.
The great difficulty in selecting a range of individual shares and actively- managed share funds that consistently outperform the market encourages many investors to adopt a core-satellite approach to investing.
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Performance for the duration
John Wasiliev, 21 July 12 Support for bond exchange-traded funds (ETFs) is still in the early stages, but their launch earlier this year has been timely for pioneering investors who have given them a go.
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