Fire Your Small Cap Mutual Fund Manager
We have found through research that 78% of small cap managers were unable to beat the index. The news is even worse for longer periods of time. Over the past 10 years, 84% of small cap managers were unable to beat the index. In the past, it was believed that actively managed funds by active managers could find companies that weren’t being covered, find out the information, exploit that information by making investment decisions that they could profit from. This doesn’t happen often anymore because there are more analysts now covering more companies and any investment manager can purchase a software now to get updated financial information on any publicly traded company. Fees are very high for actively managed small cap fund’s, the average fee is 1.61%. Whereas, the index fund costs .06%. It will only become more difficult going forward in the future for active managers to consistently outperform their benchmark in the index.
Casey Smith
President
Recent posts
Share This Story, Choose Your Platform!
Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.
Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.
To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.