What every investor should know about smart allocation, protection, and long-term performance of their funds.
If you ask the average investor to describe their feelings about the modern-day stock market, chances are you will elicit a highly negative response.
Or at least a mild scoff.
Not surprising, considering the ongoing frustration with high frequency trading.
In fact, many everyday investors (retail investors, to the financial world) are pursuing new horizons outside of the traditional stock market and have been since the late 1990s.
What did they find?
Rather than riding the waves of dominant risk factors inherent in stocks, they are enjoying a more diversified form of fund management: indexing.
Index Funds: Worth a Look for Longevity
While the nature of index funds is passive compared to next-of-kin managed funds, historically index funds outperform the most actively managed funds.
It is a bit like the tortoise and the hare. While slow and steady, the index funds historically have taken home a larger piece of the pie.
Everyday investors sometimes prefer indexing over stocks because it is simpler to access and manage without giving up any of the benefits of wealth building via the stock exchange.
Should you consider index funds as part of your portfolio?
While each investor brings a unique set of circumstances to the table, indexing is generally a viable option for investors due to its low portfolio turnover and reduced risk in comparison to holding individual security certificates.
Guidant Wealth Advisors works closely with clients to determine a holistic wealth-building plan that achieves personal goals.
The information presented is past performance. Past performance is no guarantee of future return.
The index information seen here is for illustrative purposes only.
This is not indicative of any specific investment. It is an illustration of how a certain investment option may have performed using the past performance listed.
Always consult with a licensed investment advisor before making any investment decisions to understand all risk associated with various investment vehicles.