Comments on: The Pros and Cons of Fundamental Investing http://thecollegesolutionblog.com/2007/07/09/the-pros-and-cons-of-fundamental-investing/ Sun, 14 Mar 2010 04:07:43 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Brian B http://thecollegesolutionblog.com/2007/07/09/the-pros-and-cons-of-fundamental-investing/comment-page-1/#comment-19 Brian B Tue, 24 Jul 2007 06:33:46 +0000 http://ask-lynn.com/2007/07/09/the-pros-and-cons-of-fundamental-investing/#comment-19 A couple questions this raises for me: A problem with investing in many mutuals is buying them on their past performance history and expecting them to do the same in the future. These sound like they haven't been around long enough to jump into them yet (although you did mention the study that evaluated the 'What-If' of past performance). Secondly, isn't the biggest benefit of buying index funds being their low fees. The argument I hear is that non-index funds have larger performance swings from year to year and when you add in the much larger management fees then the performance is much worse. How are the management fees fundamental indexing compared in comparison to index funds? A couple questions this raises for me:

A problem with investing in many mutuals is buying them on their past performance history and expecting them to do the same in the future. These sound like they haven’t been around long enough to jump into them yet (although you did mention the study that evaluated the ‘What-If’ of past performance).

Secondly, isn’t the biggest benefit of buying index funds being their low fees. The argument I hear is that non-index funds have larger performance swings from year to year and when you add in the much larger management fees then the performance is much worse. How are the management fees fundamental indexing compared in comparison to index funds?

]]>