Investing: Exploring the Performance of Actively Managed and Index Funds

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Ready to pull back the curtain on the mysteries of investing in public mutual funds and index funds? You're in the right place as we tackle the complexities of active and passive fund management. We guarantee you’ll gain a deeper understanding of how these funds operate, their associated fees, and the significance of clear investment goals. 

Now, let's talk about the lifecycle of actively managed funds. We'll examine real-life examples, such as the Russell 1000 Large Cap Growth Index, Morningstar Large Cap Growth Trust, and Vanguard Large Cap Growth Index, over fourteen 10-year periods since 2000. Plus, we’ll dissect the performance of six randomly selected funds over a decade and a half. You'll learn how the sequence of returns impacts performance and why it's crucial to grasp the implications of holding onto an underperforming fund.

Toward the end of the episode, we question why financial institutions are promoting index and passive investing. While it may seem like a one-size-fits-all solution, we challenge this notion and reveal how these institutions profit from investors, regardless of performance. We urge you to question what you’re told and conduct independent research for the best investment outcomes. If our conversation sparks questions or disagreements, visit ditchthesuits.com and let us know.

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Thanks to our sponsor, S.E.E.D. Planning Group! S.E.E.D. is a fee-only financial planning firm with a fiduciary obligation to put your best interest first. Schedule your free discovery meeting at www.seedpg.com

You can watch all episodes, as well as other great content produced by NQR Media through their YouTube channel at https://youtube.com/@NQRMedia

📧 For more information or to get in touch with us, visit https://www.ditchthesuits.com

👍🏼 You can also follow us on Facebook, Instagram and Twitter at @nqrmedia

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About Your Co-Hosts:

Travis Maus has been in financial services for over fifteen years. He is a Senior Wealth Manager and Chief Executive Officer at S.E.E.D. Planning Group.

Steve Campbell has over a decade of experience in the industry and serves as Chief Brand Officer at S.E.E.D. Planning Group.