Don't quit the market ... just quit hugging the index

Massive outflows from index hugging fund managers should not trouble you ... the best investors follow these rules.

PORTFOLIO POINT: Fund managers tracking the index are locked into a faulty structure. The index should only contain the best-performing stocks, not the biggest.

Rather than reporting on companies that I think are good, bad or ugly, this is a story of far more enduring importance to investors.

So let me start with an observation: investors are leaving the stockmarket in droves.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles