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Question of the Day

Investing #8

Which mutual funds have more investor dollars: actively managed funds or index funds?

www.ngpf.org Last updated: 10/6/19

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Index Funds

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Follow Up Questions

  1. If you saw an advertisement for a mutual fund that consistently “beats the market” (pick stocks that do better than the overall market), what questions would you ask?
  2. 90% of mutual funds that are active and trying to “beat the market” do NOT succeed over the long-term and yet close to 50% of mutual fund assets are invested in these active funds. Why do you think investors choose to invest this way?