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Active or Passive Way of Investing?
By Investment Stab  •  April 3, 2017
Active Investing versus Passive Investing This is the battle that is happening on Wall Street since 1975 when John C. Bogle started the first fund company, The Vanguard Group, in the United States (US) offering to mom-and-pop investors low-cost index funds that aim to mimic the US index returns and charge extremely low cost for it (like 0.1% of the asset per year). Before 1975, active trading (or active fund management) was the only thing available to investors who wishes to get someone to managed their money. These active funds seek to achieve above market returns for their investors, and in return they charge high fees (from 2% to 20% of the profits per year). At the beginning, everyone was sceptical of the idea of an Index Fund, because it gives investors only market returns, not spectacular returns above the market rate. People are greedy and just cannot take ......
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By Investment Stab
We are a group of Singaporean students who are curious and interested in Finance. As we dive deeper into this area in search of more knowledge, the more debates and differences we have. We also realised that financial literacy is not strongly inculcated in the younger generations, leading to numerous costly mistakes. Some of such includes believing in "high profiting" scams such as land banking and buying unnecessary investment schemes which are often motivated by the salesperson's personal interest ...
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