- Difficult to beat the market
- Downside protection
One of the benefits of active-management-funds is that skillful and highly experienced professionals can excel their knowledge in terms of managing our assets. During times when the market dips, they can still try to protect our financial products.
- Diversify your investments
Always bear in mind that “don’t put all your eggs in one basket”. Allocate your holdings to different products, you may also purchase a few funds in one go.
According to a research, within the period of 5 years, there is 91% of funds that are unable to beat the S&P 500 i.e. the market. As such, the low cost index funds could in turn be a more feasible option.