Any good performing active management fund in Switzerland?

[renie]

Hi All,

Besides puting aside some money in indexes, I would like to invest in an active management fund with a decent track record, ideally based in Switzerland. Do you know any?

Thank you

 

[quant]

@renie There are none.

 

[thedrgonzo]

@renie I'm curious. Why would you want to do that?

 

[renie]

@thedrgonzo Indexes have outperformed active management but it is also true that we have undergone 15 years of unusually easing monetary policy and low interest rates. Not sure how the behavior of passive investing will change if, for example, there's a new inflationary spike that brings a more tightening monetary policy. Since I don't know the future, it may make sense to combine active and passive investing.

 

[michunt]

@renie So, active managed funds as a whole will never outperform passively managed funds, Since in approximation the passive funds have the performance of the average active fund before cost.

If you don't know the future, how would you identify the active fund that outperforms other active funds? And if you think you can identify the funds that outperform the average, why can't you directly identify the stocks that outperform directly?

 

[strobertofsalzburg]

@renie Actively managed funds always underperform passive ones on long term; why would you choose that ?

 

[jjmaleyscw]

@strobertofsalzburg That's not true. Some funds vastly overperform. However choosing the right fund to invest it is the issue. You do know know which will overperform. Similar issue with stocks.

 

[quant]

@jjmaleyscw Most only outperform for a year or two, but not for longer periods. Do you have some examples of funds that "vastly outperform" passive funds over a 25-year period?

 

[jjmaleyscw]

@quant Note : I only invest in passive. Yes there are examples.

 

[blacksheep78]

@quant Real garbage comment right here

 

[rui]

@jjmaleyscw Yes, the 2% does, but don't think you will ever have a chance to have access to them. https://www.morningstar.com/business/insights/blog/funds/active-vs-passive-investing good luck!

 

[jjmaleyscw]

@rui Agreed. I only invest in passive. But it doesn't mean some active funds cannot outperform. It certainly can and always will.

 

[rui]

@jjmaleyscw As said, 2% indeed does.

 

[actuallyfun]

@renie stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things stay away from these things

Don't be scammed but the """financial advisors""" who are basically selling their products and getting fees from you. GO PASSIVE (VT similar or whatever you like)

 

[jalamb86]

@renie No.

 

[bod2411]

@renie

decent track record

Basing future performance on the past. Always a good way to lose money.

 

[jjmaleyscw]

@bod2411 Yes and no. A lot of people including in this thread will tell you index overperform. This statement is based on past returns.

 

[michunt]

@jjmaleyscw No, its not based on past returns, it is based on the concept. You choose a strategy that guarantees average pre-cost performance and then save on cost. This means you outperform the average active investor by design, always.

 

[jjmaleyscw]

@michunt First of all no strategy is guaranteed. Second of all pre cost performance based on what? You are making these assumptions on last performance.

 

[michunt]

@jjmaleyscw If you hold all assets equally you get the average result (since you hold the average of the market). Nothing based on last performance, if the first passive index was opened today I would still say the same thing.