As you sow, so shall you reap, they say. As you measure, so shall you reap, say the business managers. The fact that the performance pay of fund managers depends on the measure applied, the value of which remains questionable to investors, is a problem evident around the world. Chapter one emphasised that it is…

From the series “What is the role of a fund manager? Who needs a fund manager? Index funds and the ABC of long-term investing“ Ever heard of Efficient market hypothesis? Don’t worry, it is nothing unfathomable. The price of securities is affected by a number of different factors, e.g. corporate results, economic growth expectations, etc….

Index funds and the ABC of long-term investing The above two interrelated terms form the foundation of an investment strategy that is rapidly gaining popularityall over the world. According to leading international analysis centres, passive, index-based investing is the most profitable option for most investors in the long term. Index funds have now finally gained…