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On 1/25/2018 at 1:32 PM, malloy said:

http://www.theage.com.au/business/markets/baep-tops-mercer-survey-of-the-best-australian-share-funds-of-2017-20180124-h0np22.html

Article in The Age which briefly touches on passive v active portfolio management and points out that last year was a rare year where active had better returns than passive. 

Just following on from discussions in prior years that has been had on the topic.

Like all of these things, you need to be extremely cautious about reports on investment returns put out by the investment industry itself. You certainly need to dig down into the underlying figures to find out what assumptions are made in calculating the returns, and I would be very wary about any report that talks about management fees between 0.2 and 1%; the management fees charged by the industry are one of the reasons why I run my own SMSF to avoid them.

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1 hour ago, jw1739 said:

Like all of these things, you need to be extremely cautious about reports on investment returns put out by the investment industry itself. You certainly need to dig down into the underlying figures to find out what assumptions are made in calculating the returns, and I would be very wary about any report that talks about management fees between 0.2 and 1%; the management fees charged by the industry are one of the reasons why I run my own SMSF to avoid them.

Oh I am fully aware what I was trying to get at was that the fund managers who chatge huge fees tend to not even beat the market before fees. Most people with a reasonable amount of funds invested would be statistically better off just investing in benchmarked passive ETFs in line with a sample portfolio weighting based on age.

I think the only area where active fund managers regularly beat passive is in small cap company funds.

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33 minutes ago, Shahanga said:

That story of people buying (very poorly performing) stock to screw short sellers is just nuts.

No doubt some sharp operators are using some gullible types to make a killing and others are just going along for the tulip ride. Going to be one hell of a hangover.

Got the potential to totally change the game this one i think.

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