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Want to Outperform 98% of Professional Mutual Fund Managers? Buy This 1 Investment and Hold It Forever.

The Motley Fool

Professional fund managers tend to be highly educated, hard-working, and extremely smart. But it doesn't take a highly complex trading plan to come out ahead of 98% of professional mutual fund managers over the long run. However, the challenge is compounded as the fund manager starts managing more capital.

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A Financial Mystery: Investors Paying Tens of Billions of Dollars to Underperforming Mutual Funds -- When Index Funds are Cheaper and Perform Better

The Motley Fool

In 2021, investors paid almost $90 billion in total fees on about $14 trillion of actively managed mutual funds to an industry flogging a product demonstrably inferior to index funds. Active vs. passive funds It's quite a problem, and a seemingly puzzling one, too. Image source: Getty Images.

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This Simple Investment Strategy Outperforms 88% of Professional Fund Managers Over the Long Run

The Motley Fool

You don't need to be a Wall Street insider to beat most actively managed mutual funds. A simple investment strategy has outperformed nearly 88% of funds over the past 15 years, and its relative performance typically gets better over time. Here are the most recent results for large-cap funds. Image source: Getty Images.

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You Can Outperform 98% of Professional Fund Managers by Using This Simple Investment Strategy

The Motley Fool

Professional fund managers are extremely smart, highly educated, hard-working, and ultra-competitive. If you can perform in the top 2% of all professional fund managers on Wall Street, you're sure to find yourself with a very handsome payday at some point. All you have to do is buy a broad-based index fund and hold it for years.

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Want to Be a 401(k) Millionaire? 4 Tips All Retirees Should Know.

The Motley Fool

Mutual fund company Fidelity reports that as of the third quarter of 2024, over 540,000 participants in the workplace retirement plans it administers were sitting on million-dollar-plus stashes. Saving $3,000 per year in the same index fund for 35 years, however, would very nearly make you a millionaire.

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How Should a Beginner Invest in Stocks? Try This Index Fund.

The Motley Fool

It would have been much better if I had bought a broad-based index fund, like SPDR S&P 500 ETF (NYSEMKT: SPY). Thankfully, I didn't have a lot to lose When I started investing, there was no such thing as an exchange-traded fund (ETF), though Vanguard had by then popularized the index fund. Image source: Getty Images.

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The Vanguard 500 Index Fund Is Great, But Another Vanguard ETF Has Outperformed It the Past Decade

The Motley Fool

The Vanguard 500 Index ETF (NYSEMKT: VOO) is one of the most popular ETFs (exchange-traded funds) , and for good reason. Vanguard made a name for itself by offering low-cost index mutual funds and later expanded its popular offerings to ETFs. The nice advantage ETFs have over mutual funds is that they allow for intraday trading.