You may have heard that actively managed funds typically underperform passively managed funds (aka index funds). But what does this statement mean? How does it happen? And why does it matter to me as an investor?
Portfolio turnover influences investment returns and personal cash flow. It applies to managed portfolios, mutual funds, ETFs, and your personal portfolio that you manage on your own. Here’s what it is and why you should pay attention to turnover.
What are index funds and how do you invest in them? Learn about market indexes, why people like to invest in funds that match these indexes, and how to find index ETFs and mutual funds.
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