Daniel: > unless you really know what you're doing, the everyday rebalancing > of a tracker fund can eat you alive in commissions and slippage. > The performance of some "index funds" is nothing short of embarrassing.
I agree with Daniel. Index funds are not always your best choice. For example, if you are invested in an equity index fund in these days, you are in serious trouble. Index funds are managed with the objective of minimizing the risk of loss relative to the index. But, they are wide open to the market risk. If the market goes down, the index fund goes down together with the index. Nobody in the index fund business manages the market risk. But then markets always go up in the long run, aren't they? At least, this is what we have been taught for who knows how long. Ask that to the Japanese equity index fund investors: http://finance.yahoo.com/q/bc?s=%5EN225&t=my Sabri ____________________________________________________________________________________ Fussy? Opinionated? Impossible to please? Perfect. Join Yahoo!'s user panel and lay it on us. http://surveylink.yahoo.com/gmrs/yahoo_panel_invite.asp?a=7
