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Expectations vs Reality

November 15th 2015

Before you find out how active managers really performed, estimate the results for yourself first

Active funds vs passive funds
Sigfig 2014 review

So what does this mean for you?

It means you should tailor your expectations about invesment managers and particularly those that promise to beat the market. If you're looking to maximise your investment you're likely to be better off not trying to beat the market. In fact there's really only a few things that tend to help.

Diversify your portfolio

More than 90% of investors have poor diversification. ETFmatic has solved this solution by automatically balancing your portfolio with each funding cycle.

Pay low fees

By far the most damaging effect to your overall fund performance is paying high fees. Our low cost ETFs enable us to manage your fund in the most efficient way possible.

Be disciplined, don't overtrade

The top 1 percent of investors are more disciplined and less active at trading in and out of stocks. The ninety-nine percent of investors had 13 percent annual turnover, two percentage points more active than the top 1 percent. ETFmatic uses a balancing algorithm that intelligently invests your funds to make the minimum number of trades necessary including internal netting so that

We believe our passive investment engine offers a superior investment service while avoiding the pitfalls found with active managers.

But don't take our word for it...

Involvement of financial advisors is found to lower portfolio returns net of direct cost, to worsen risk-return profiles…and to increase account turnover

Source
With all investments your capital is at risk and the value of your investments and the income deriving from it can rise as well as fall. Past performance is not a guide to future performance.