Celebrity Fund Managers are highly paid poster boys and girls for their respective companies, and their performance and personalities are used in marketing messages which attract millions and even billions into their funds. But are they worth their huge salaries and bonuses or should you avoid them at all costs?
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In this session you will discover:
- What fund managers are actually trying to do
- The levels of (in)consistency among fund managers
- What makes a celebrity fund manager, a celebrity fund manager
- What it costs you to choose an active manager
- The other factor you should look for in a fund manager, in addition to consistency
- Why it is important to rebalance
- How much, if any, of your portfolio you should devote to active fund management
Warning: be wary. Most celebrity fund managers enjoy a brief period of fame; very few stay at the top of their game. The trick is to find those few, and keep an eye on them, but even then to only do so with a small proportion of your money. For the bulk of it, let the markets and the asset allocation do their thing.
As always, for a full transcript of the show, click the hoooge blue button below
Resources mentioned in the show
Video no. 37: Active vs Passive investing
Session 120: Understanding Investment Sectors
Session 121: How To Choose Investment Funds
Session 105: Investment Masterclass Part 1 – Asset Allocation
Much of the inspiration for this session came from this post over at Evanson Asset Management
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