1. I am a fan of index funds, especially because their management fees tend to be very low. 2. Now that managed funds are doing somewhat better, will investors drift away from index funds? 3. The efficient-Market hypothesis strongly supports index funds over more active mutual funds. 4. Within a few years, feds also will be able to invest in a small-cap and an international stock index fund. 5. Also, index funds tend to hold stocks for longer periods than other funds, leading to fewer realized capital gains and therefore smaller tax bills for long-term investors. 6. Also, if you can select a low-cost index fund, use it. 7. Also, some conventional index funds invest only in a representative sample of index companies. 8. Also, index funds tend to trade less often than actively managed ones, so the impact of such costs is reduced. 9. Although index funds in recent years have beaten most actively managed funds, there will be years when the opposite is true. 10. Although investors have been increasing their allocations to index funds in recent years, those funds have never dominated the inflow figures as they do now. |
|