Breaking my addiction to 'active management'

Over a one-year period, only about 37 per cent of the US actively managed large cap equity funds in the US outperformed the S&P benchmark.
Over a one-year period, only about 37 per cent of the US actively managed large cap equity funds in the US outperformed the S&P benchmark.PHOTO: AFP

Rather than using predictive methods to beat the market, it's better to just invest regularly

On Dec 22 last year, I invested the money in my Supplementary Retirement Scheme account into one of the investment portfolios that my company manages. About a month later on Jan 19, I checked on how it has performed and to my pleasant surprise, it has grown 7.64 per cent.

I was very excited about it and shared the performance with my management team. One of my colleagues who invested in the same portfolio as me in September last year, however, "complained" that his portfolio was still down by 12 per cent.

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A version of this article appeared in the print edition of The Sunday Times on February 24, 2019, with the headline 'Breaking my addiction to 'active management''. Print Edition | Subscribe