Index funds vs actively managed mutual funds

[Anonymous]

I am a big believer in low cost investing.

But I also fear that index investing is getting to be too big. I am not sure how this will cause problems, but I fear it will.

I now expressly have substantial part of my portfolio that is not in index funds.

[Anonymous]

Anonymous wrote:
I am a big believer in low cost investing.

But I also fear that index investing is getting to be too big. I am not sure how this will cause problems, but I fear it will.

I now expressly have substantial part of my portfolio that is not in index funds.

about 30% now, about 50% by 2024.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
I am a big believer in low cost investing.

But I also fear that index investing is getting to be too big. I am not sure how this will cause problems, but I fear it will.

I now expressly have substantial part of my portfolio that is not in index funds.

about 30% now, about 50% by 2024.

So I feel like everything is cyclical, and too much popularity is a top. That's the way I feel about index now. I know it may not make sense, but that's my disposition.

[Anonymous]

It doesn't make sense because it's an index and not a stock. Stocks are cyclical. Patterns of how you purchase them are not.

[Anonymous]

Anonymous wrote:
I am a big believer in low cost investing.

But I also fear that index investing is getting to be too big. I am not sure how this will cause problems, but I fear it will.

I now expressly have substantial part of my portfolio that is not in index funds.

Interesting. So what do you invest in when you would invest in index funds but aren’t?

[Anonymous]

Anonymous wrote:Active investing is for suckers. Any accidental gains when they get lucky would probably be wiped out by the extra fees anyway.

Go with low cost mutual funds with low expenses. Vanguard is popular for a reason. Aim for no more than half a percent in fees. (And preferably much lower)

++++++1.

Read up on the lazy/three fund portfolio.