Indexation

Research by Standard and Poor’s has proven that the majority of all actively managed mutual funds (more than 70%) fail to meet or exceed their benchmark. Over long time periods (5 years or more) more than 80% fail to do so.

Passive index investment strategies are superior, because they narrow the range of outcomes and lower investment risk by largely doing away with non systemic risk. Active strategies increase risk without increasing return and cost a great deal more, thus further lowering return.

The solution is to follow financial strategies that are scientific, passive, diversified, savings-focused, risk controlled, low cost, and tax efficient. Since asset allocation accounts for the majority of return, individuals are much better off with a well-considered investment viewpoint and a matching plan. By adhering to a time-proven methodology that reflects risk and lifestyle requirements through asset allocation – the system will provide various options in this regard depending on individual requirements – which in turn will be achieved by use of index products.

Water financial, offers investors a user-friendly method of assessing risk, developing a plan, adjusting it to reflect changing circumstances or individual wishes, execution, and ongoing monitoring, as well as support via an online application.

Other reading:

A dying bankers last instructions

Cheaper funds perform better

Does more expensive = better?

What institutional investors are doing

Explained simply

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