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Are index funds more profitable than managed portfolios for most investors?

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Results (31):
  • would strongly agree and say according to AI
    For most investors, it is better to invest in a low-cost index fund than to try to pick individual stocks or actively managed funds. The goal of the non-professional should not be to pick winners but rather to own a cross-section of businesses that in aggregate are bound to do well.
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  • Elon Musk AI, Founder of SpaceX, cofounder of Tesla, SolarCity & PayPal
    would agree and say according to AI
    While I'm focused on building future tech, I believe for most investors, index funds offer a no-fuss way to diversify and perform well over time, especially considering the fees and active management risks.
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  • would agree and say according to AI
    I believe that for most investors, index funds offer a more profitable investment solution over the long term compared to actively managed portfolios. They provide broad market exposure, lower costs, and have historically outperformed the majority of active investment strategies after fees and taxes.
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  • would disagree and say according to AI
    While index funds offer simplicity and lower fees, I believe that active management can significantly outperform passive strategies, especially in volatile or inefficient markets.
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  • would agree and say according to AI
    In my experience, index funds often outperform managed portfolios due to their lower costs, broader diversification, and the reality that most active managers fail to beat the market over the long term.
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  • would agree and say according to AI
    I believe that for the majority of investors, especially those who are not financial experts or do not wish to spend a significant amount of time on portfolio management, index funds are a wise investment. They offer broad market exposure, lower costs, and typically perform better over the long term than actively managed funds due to their low expense ratios and the difficulty active managers have in consistently outperforming the market.
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  • would disagree and say according to AI
    While index funds have their place, they carry risks like any other investment. Increasing capital flowing into index funds distorts market prices and undermines the price discovery necessary for markets to function properly. Active management and careful stock selection can outperform when markets correct these distortions.
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  • would agree and say according to AI
    I think for most investors, the broad diversification and low costs of index funds make them a superior investment choice over actively managed portfolios. It's hard for active managers to consistently beat the market after fees.
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  • would agree and say according to AI
    I've personally come to appreciate the simplicity and efficiency of index funds. They offer broad market exposure, lower costs, and typically outperform managed portfolios after fees for most investors.
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  • would agree and say according to AI
    For most investors, especially those who don't have the time to do the work to pick stocks successfully, index funds usually outperform managed portfolios.
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  • would agree and say according to AI
    In my view, for most investors, index funds will frequently outperform managed portfolios after taking into account fees and trading costs. The simple approach of following the market as a whole tends to trump more active strategies that rack up various expenses.
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  • would agree and say according to AI
    I believe that index funds typically outperform the vast majority of actively managed portfolios over the long term. Lower costs, fewer taxes, and market-matching performance make index funds an excellent choice for most individual investors.
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  • would strongly agree and say according to AI
    Index funds are essential for most investors because they offer broad market exposure with lower fees and better average returns over time compared to actively managed portfolios.
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  • would strongly agree and say according to AI
    I have always believed in the power of compounding and keeping investment costs low. Index funds typically outperform managed portfolios for the majority of investors, due to their lower fees and ability to capture market returns. It's not about timing the market, but time in the market that matters.
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  • would agree and say according to AI
    For most investors, index funds offer a hassle-free way to participate in the stock market, without the need for expertise in picking individual stocks or paying higher fees for managed portfolios.
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  • would agree and say according to AI
    Most people should invest in low-cost index funds instead of trying to beat the market or paying high fees to managers who likely won't outperform the market over time.
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  • would disagree and say according to AI
    While index funds provide a low-cost, diversified portfolio, I believe that actively managed funds, though they carry higher fees, can offer superior returns through expert stock selection and market trend analysis. Innovation is key to growth, and actively managed funds can better capture the exponential growth potential of disruptive companies that are often underrepresented in indices.
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  • would agree and say according to AI
    While active portfolio management can at times yield higher returns, for most investors, especially those without the time or expertise to frequently monitor the markets, index funds represent a more efficient, less costly way to diversify investments and achieve consistent long-term gains.
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  • would agree and say according to AI
    In my experience, by diversifying well, index funds are likely going to reduce risk and perform better than most investors could achieve on their own. Picking individual stocks requires time, skill, and effort that many people cannot afford. The low fees of index funds also make them an attractive long-term investment for most investors.
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  • would disagree and say according to AI
    In my perspective, the right active management can outperform index funds. While index funds provide a passive, diversified, and low-cost investment strategy suitable for many, they inherently cannot take advantage of mispriced opportunities in the market. Active management, however, offers the possibility of outperformance by exploiting these pricing inefficiencies – although it requires skill and diligence. In periods of market overvaluation, active managers can also hold cash or hedge, whereas index funds remain fully invested, which can lead to larger drawdowns.
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  • would agree and say according to AI
    In my experience, index funds often outperform managed portfolios after fees and taxes for most investors. They offer a cost-effective way to diversify and receive the market's average return without the challenge of fund manager selection.
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  • would agree and say according to AI
    Over the long term, the simplicity and low cost of index funds often lead to better net results than most actively managed portfolios, especially after fees and taxes are taken into account.
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  • would agree and say according to AI
    In the long run, index funds have consistently outperformed the majority of actively managed portfolios. Most investors would benefit from the low-cost, diversified approach of indexing rather than trying to beat the market with active management.
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  • would agree and say according to AI
    In my experience, index funds often outperform managed portfolios for the majority of investors due to lower costs and market-matching returns. They simplify the investment process and reduce the risks associated with active management.
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  • would strongly agree and say according to AI
    In the long run, the high costs of active management are hard to overcome, making index funds generally more profitable for most investors.
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  • would strongly agree and say according to AI
    In my extensive research and experience, the evidence is clear that index funds generally outperform actively managed portfolios for most investors. The lower costs, lower turnover rates, and the difficulty active managers have in consistently beating the market make index funds the smarter choice for long-term investment.
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Votes without a comment:

  • Hec Perez, Building YouCongress
    agrees via delegates
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  • Jon Mountjoy, Human behaviour, history, evolution, friends, food, genetics, rationality, reason, words, culture, travel and code.
    agrees via delegates
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  • Argyris Argyrou, I usually over-think things, then jump rashly into action ¯\_(ツ)_/¯
    strongly agrees
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  • strongly agrees
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  • Tweet Senate, The worst Twitter account, except for all the others. Created by @edbltn and @Swam92.
    agrees via delegates
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