Re: Making money in the stock market
Mutual fund managers have strict regulations and that's why they have a tough time beating the market. However, you are correct about the funds being sales. My girlfriend worked for a actuarial/consulting firm and they monitored and recommended funds to clients. The funds had to disclose their techniques (most of the clients were pension funds), and most of these tecniques used were pretty basic and there is no way that they had any kind of edge over the market. The only reason the funds existed because the people who are in charge of the pension funds have no idea what tecniques work consistently in the market. So if the sales people convinced the people in charge the fund had new investors. Not surprisingly many of the funds had poor performance and huge variance.
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