Urbandreamer wrote:AleisterCrowley wrote:There are a lot of IT fans on these boards
Is there any evidence that ITs outperform the market over the long term?
I mean academic studies rather than personal / anecdotal evidence - as there is a considerable body of research to suggest that managed funds in general underperform over time (something like 70% fail to beat 'the market')
Dod has already given many good reasons, however there are many more.
For example there are IT's and funds that pay far higher income than the market rate. Their total return tends to not be so good, but that's expected.
There are others that are significantly less volatile than the market.
Some who simply try to beat inflation and not loose money.
There are yet others that pay their dividends monthly.
Others who avoid sinful companies.
Given the options, why assume that the only reason to buy an active fund is to attempt to outperform the market.
Beating the market is certainly not the reason for some of my investments.
..there are IT's and funds that pay far higher income than the market rate Their total return tends to not be so good, but that's expected. . So for the convenience of taking dividends rather than selling down holding occasionally?
There are others that are significantly less volatile than the market. Maybe, I can see the appeal
Some who simply try to beat inflation and not lose money. Likewise, but do they achieve this long term?
There are yet others that pay their dividends monthly. Tail wagging dog I think, it is easy to maintain a buffer account and draw a monthly income from it
Others who avoid sinful companies. Fair point - ESG/ethical investing