Index Investor: How to Win the Loser’s Game [Part VII]

Index Investor: How to Win the Loser’s Game [Part VII]

Although indexing is a relatively simple way to invest, there are still important questions an index investor needs to ask. Crucially, you need to ensure that you invest in a diverse range of assets that reflects your attitude to risk. You might also want to “tilt” your portfolio to particular risk factors – small-cap or value stocks, for example – which, although more volatile, have been shown to deliver higher returns over the long term.

Index Investor: How to Win the Loser’s Game


So, we’ve explained how the academic evidence points overwhelmingly to indexing being the best way for the vast majority of people to invest.

Qualivian Investment Partners July 2022 Performance Update

stocks performance 1651757664Qualivian Investment Partners performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more Dear Friends of the Fund, Please find our July 2022 performance report below for your review. Qualivian reached its four year track record in December 2021.  We are actively weighing investment proposals. Starting in November Read More

Index funds should form the biggest part of every portfolio.

We’ve already mentioned the importance of asset allocation – deciding how much to invest in equities or bonds, for example.

Another key decision is what type – or types – of index fund to go for.

The traditional and still the most common type is the cap-weighted or market value-weighted fund.

One drawback with cap-weighted funds is that as the price of a stock goes up, so does its weighting.

That can sometimes leave you overweighted in a relatively small number of stocks.

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