Indexing
Beginning of paper
The first index fund began in 1971, with $6 million funded by Samsonite, the luggage-maker. Since then, there have been many arguments of whether an active index fund or a passive index fund offers better long-term results for investors.
Index funds are already the fastest growing sector of the mu ....
Middle of paper
.... the marketplace. Passive (index) portfolios state they can mirror the performance of the indices. Both have their good times and their bad times. Active indexers raise cash in times of increased risk and instability while passive indexers remain fully invested. This can be quite painful during times of large declines in the market.
Passive portfolios mirror the gains of the indices during roaring bull markets and eventually outperform the majority of active money managers who must rem ....
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Word count: 1301
Page count: 5 (approximately 250 words per page)
