Mutual Funds Day 10: Active versus Passive Funds

ByBalachandran Viswaram

Active means there is a direct involvement of labor & Passive means utilizing systematic or computer-generated instructions to do the stock pickings. “Buy index funds. It might not seem like much action, but it’s the smartest thing to do.” — Charles Schwab “The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” — John Bogle When…

Mutual Funds Day 5: Advantages of MF over Active Investing

ByBalachandran Viswaram

Mutual Funds were there from the start, but they became famous only after the Vanguard Group launched their passive schemes. The main reason their offerings became popular was due to lower fees & transaction costs. Earlier on people preferred to invest directly by buying stocks a.k.a. Equity. The advantage of Equity is that there are…