Savannah Morning News- “Ever wonder why fund managers can’t beat the S&P 500?” Michael Douglas asked in the 1987 movie “Wall Street.”
If you have your money in a mutual fund administered by an investment manager, chances are you have indeed wondered. Even the smartest Wall Street pros are wrong now and again, and when they are, your nest egg takes a hit. Not everyone has the mettle to withstand this kind of risk.
If you prefer the safer approach to investing, you can’t do much better than index funds, says P.J. DiNuzzo, president of DiNuzzo Investment Advisors in Beaver, Pa.
Index funds aren’t in the business of trying to beat the stock market. Instead, they exploit the averages by following the market as closely as possible.
