Should I be Investing in Index Funds

So, do you still think you can make money trading stocks or investing in actively managed funds, well you’re right, you can, but as per this latest FIscovery, just because you can doesn’t mean you should. The Money Wizard over at My Money Wizard does a real nice job explaining why despite the few exceptions over the past 30 years, why you should be investing your money in index funds. Numbers don’t lie, and in the post, they provide a link to a 2016 study that found that approximately 85% of active fund managers under-performed the S&P 500 index. They further go on to talk about why almost every stock trader fails to beat the market, why mutual fund managers can’t beat the market, the challenges that come with picking individual stocks and why the easy solution is simply index funds.

Read this article on My Money Wizard.

Still not convinced, simply pick up either (or both) A Random Walk Down Wall Street by Burton G. Malkiel or The little Book of Common Sense Investing by John C. Bogle and you will find within the 100s of pages overwhelming and compelling statistical evidence why you should be investing in index funds.