I’m trying to understand investing, picked up a book on index funds, and now I’m doing web research. (in short: index funds premise is ‘passive’ management… you invest in the S&P 500 and expect that over 10 years your investment will outgain an ‘actively’ managed portfolio because your financial adviser a) cannot consistently pick winners and b) financial advisers make money by churning… getting you to sell this and buy that, in addition to their ‘management’ fees. So what’s *really* true? Gotta find both sides of the argument right?
Fool.com on S&P 500 — excerpt: “(Psst. There’s a reason that all these magazines don’t tell you how simple mutual fund investing really is. Scientific marketing surveys and focus group testing have determined that magazines with covers that read “Index Funds: Still The Best Choice!!!” every single month really wouldn’t sell as well as magazines that promise “Our BRAND NEW 10 Best Mutual Funds To Buy RIGHT NOW!” Sad, but true.)”
Anyone else have an opinion?