Investment Advice!

This is the first instalment of a three segment piece on investment advice. This may seem unorthodox and people may not welcome it easily but it is an efficient way to conduct investments, this advice was given by a well reputed man in the investment game, Gerard Mincack. Most people will invest in major hedge funds. 88% of Hedge Funds and 65% of mutual funds under-perform in the market (2012 stats) which means you have a 35% chance of picking one that will beat the market. If you are an investor who is “rich” you will invest in a hedge fund, these too under-perform in the market. This is because of fees, investors pay a lot in fees and by the time you subtract those costs you have a much lower chance of beating the market. Having a varied portfolio in index funds, you will have a larger profit over a larger period of time as they have a 90% chance of beating the market. This is because they do not have high cost fees therefore allowing them to track the market whereas the other mutual funds lose out due to these costs and fees. INVEST IN LOW-COST TAX EFFICIENT FUNDS. Do not try to time when to invest and pull out as the average person would not know when to do this, they invest when they should be withdrawing and withdraw when they should invest, having a portfolio with many index funds over a long haul will improve chances of beating the market and having a larger profit margin.

http://www.nlchamber.cz/clanky-czechinvest-amendment-to-act-on-investment-incentives-spurs-inflow-of-projects.html

Source(s): 
http://www.zerohedge.com/news/2013-01-05/88-hedge-funds-65-mutual-funds-underperform-market-2012 , http://www.businessinsider.com/best-investment-advice-2013-5