Hfr Fund Of Funds Index June Return

Admin | January 26, 2012 | Comments Off

Hfr Fund Of Funds Index June Return

Hfr Fund Of Funds Index June Return

According to Investopedia.com, a website owned by Forbes, there are presently more than 10,000 mutual funds in North America. There are actively managed funds which have fund managers that select what stocks to buy and sell and there are also funds, termed index funds which invest in a basket of stocks with the goal of replicating the performance of a broad market index such as the S&P 500 or Dow Jones Industrial Average. An investor in an index fund can expect returns close to the annual performance of the index that the fund seeks to duplicate.

Index Fund Mutual Funds Versus Managed Funds

One of the major benefits of index funds is that the management fees are much lower than for actively managed funds and this can result in substantial savings for investors over the long-term. While there are some exceptionally talented fund managers with great track records, many financial experts believe that index funds generally outperform actively managed funds. According to Princeton University's Burton Malkiel, the average actively managed mutual fund has returned 1.8% per year less than the S&P 500. Investing in an index fund then that seeks to mimic the S&P 500 could very likely be more profitable than investing in many of the actively managed funds.