Three Massive Risks of Actively Managed Funds

Perhaps you smoke cigarettes.

If so, you’re aware of the risks.

But what if smokers also grew nostril hair (five inches a year) and it was impossible to cut?

After four or five years, it would be down to their waists. Fortunately for smokers, this doesn’t happen.

The risks of smoking are all well known.

But the same can’t be said for investing in actively managed mutual funds.

They carry two well-known risks.

The third, and arguably most harmful, isn’t well known.

Image by Pixabay

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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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