Do Actively Managed Funds Protect Your Money When Stocks Fall?

 

Many financial advisors say, “Index funds are dangerous when the stock market falls. Actively managed professionals can save you from such crashes.”

Unfortunately for them, real-world data says they’re wrong.

Image by Pixabay

I explain that data at AssetBuilder


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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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1 Response

  1. GreenDollarBills says:

    Given that 80% of managed funds cannot beat the index my guess is that the simple answer is no. If the whole market is falling then the likelihood is that you’re invested in a fund that’s also falling.


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