Singapore Entrepreneurs Network & Startup Organization

Index investing is actually the perfect solution for those who have no time to actively invest, and yet want to avoid all the expenses a mutual fund typically charge.

If you can't beat 'em, join 'em. That's the basis of index investing. You do not need to worry about beating the market - just mirroring it is good enough.

Jag

Hi Tommy,

Yep, those are assumptions. Personally I prefer to invest myself than allow someone to do it for me, or the stock market index to dictate my returns.

For sure, there are great fund managers whose portfolio far surpassed the stock market's performance. Having said that, great fund managers like Peter Lynch are few and far between.

Typically, the majority of funds underperformed the market in the long run. Add on to the expensive fees, mutual funds may not be a attractive proposition to certain investors.

Well, I'm talking from the perspective of a DIY investor, so I'm biased against mutual funds.

Having said that, different products suit different people since everyone mileage varies.

Thanks Tommy for all your input. Please keep them coming. We need such spark.

Jag

P.S I confess that I have only browsed through your article. Will take a look at your blog in greater detail later. =)

This is a reply to a very old thread. But oh well. Better late than never right?


I am actually quite amused at how so many people do not take their investments seriously enough.

For example, let's say an average retail stock investor's earning between $2k to $6k per month. Apart from those who just started working, most of the investors who participate in the stock market, be it white collared executives who have worked for more than half a decade, or housewives, they typically have a comfortable five figure sum of money that they are investing.

My question is this: Why can these retail investors work for 8 hours a day, 5 days a week for a $2k to $6k salary, while they do not bother to even spend one hour a week to study how to manage or at least safeguard their five-figure portfolio or investments?

Anyway, just to make sure I am not off-topic, I see stock index investment as an investment option for those who are only looking at investing (or some call it: "gaining exposure") to the specific market/economy in general. Eg: STI for Singapore market, Nikkei index for Japan economy, etc.