The Intelligent Fund Investor : Practical steps for better results in active and passive funds / Joe Wiggins.

Format:

Book

Author/Creator:

Wiggins, Joe, author.

Language:

English

Subjects (All):

Investments--Handbooks, manuals, etc.

Investments.

Physical Description:

1 online resource (164 pages)

Place of Publication:

Petersfield, Hampshire, England : Harriman House Ltd, 2022.

Summary:

Investing in funds is not straightforward. We are faced with a countless range of options and constantly distracted by meaningless noise and turbulent markets. To make matters worse, our flawed beliefs and behavioural biases lead to repeated and costly mistakes, such as a damaging obsession with past performance and a dangerous attraction to thematic funds.There is a solution--a more intelligent way to invest in funds.In The Intelligent Fund Investor, experienced portfolio manager and behavioural finance expert Joe Wiggins brings simplicity and clarity to fund investing. Each chapter of this fascinating and highly readable book focuses on a vital element of investing in funds--exploring how and why investors can get it badly wrong, and providing direct, actionable steps for better results.Joe reveals: why we should avoid investing with star managers; how to decide between active and passive funds; why we should beware of smooth performance and captivating stories; why risk is far more than just volatility; the importance of a long time horizon; and much, much more.Using a combination of stories, empirical evidence and experience, Joe gives all fund investors--active and passive--what they need to reassess their beliefs, understand their biases, and make better investment decisions.

Contents:

Intro

Contents

Introduction

Prologue: It's a Matter of Beliefs and Behaviour

Chapter 1: Don't Invest in Star Fund Managers

Why did Britain's star fund manager fail?

How do we avoid investing in situations like Woodford?

Does a larger fund mean lower returns and higher risk?

Why won't strong past performance persist?

Why do fund managers make money when we don't?

Should fund managers stick to what they know?

If a fund manager is a star, is it too late to invest?

Ten-point fund investor checklist - star fund managers

Chapter 2: The Death of Active Funds Has Been (Somewhat) Exaggerated

Are index funds always the best choice?

How likely is it that an active fund will outperform an index fund?

Why is the US equity market a graveyard for active funds?

When should we invest in an active fund?

How much should we invest in active funds?

Are index fund investors prepared for a different environment?

Ten-point fund investor checklist - when to invest in active funds

Chapter 3: Smooth Fund Performance Conceals Risk

Why did anyone invest in death bonds?

What causes a fund to have smooth performance?

Is volatility a good measure of the risk in a fund?

How are smooth performance funds used to flatter outcomes?

How risky is private equity?

How can we make our funds have smooth performance?

Should we ever invest in a fund with smooth performance?

Ten-point fund investor checklist - smooth performance funds

Chapter 4: Choose Simple Over Complex

What is the attraction of a fund that is guaranteed to fail?

What is a complex investment fund?

Why do we buy complex funds, and why do asset managers sell them?

Does complexity increase fund risk?

Is the golden age of simple funds over?

What makes adopting a simple approach so difficult?.

Ten-point fund investor checklist - complex funds

Chapter 5: Great Stories Make for Awful Investments

Why invest in a "bloody ridiculous investment concept"?

Is all fund investing about stories?

Are thematic funds always a bad idea?

How do we protect ourselves against dangerous investment stories?

Why do good stories lose money?

Do fund investors learn the wrong lessons about stories?

Ten-point fund investor checklist - stories

Chapter 6: Investment Risk Is not Volatility

It Is Disaster and Disappointment

What are the risks of concentrated funds?

Why take the risk of a fund blowing up?

Is the argument for concentrated funds a myth?

What's the point of diversification?

What is negative compounding?

How costly is performance chasing?

How should fund investors think about risk?

Ten-point fund investor checklist - disaster and disappointment

Chapter 7: Past Performance Is a Terrible Way to Select a Fund

What has cricket got to do with fund investing?

Why are we obsessed with past performance?

What is the problem with performance screens?

Should we trust a fund's backtest?

How can we tell a skilful fund manager from a lucky one?

How should we treat strong past performance?

Ten-point fund investor checklist - past performance

Chapter 8: The Incentives of Asset ManagerS Are Not Aligned with Their Investors

What can rats in Hanoi teach us about asset manager incentives?

The asset management model can be misaligned with its investors

Why are there so many funds and why are they so expensive?

Do performance fees work?

Is it good news if a fund manager invests alongside us?

What is the solution to the alignment problem?

Ten-point fund investor checklist - incentives

Chapter 9: A Long Time Horizon Is a Fund Investor's Greatest Advantage.

When would we fire Warren Buffett?

What is our true investment time horizon?

When should we stop looking for the best fund?

When is the worst time to make a fund investment decision?

Is a long time horizon always a good thing?

Why is time so important?

Ten-point fund investor checklist - long-term investing

Chapter 10: Seeing Beyond the Myths and Marketing of ESG Investing

Should oil companies be buying wind farms?

Does excluding certain types of company really make a difference?

Which ESG issues really matter?

Is ESG investing just an asset management marketing ploy?

Does ESG investing lead to higher returns?

Is ESG investing a good idea?

Ten-point fund investor checklist - ESG investing

Conclusion

Acknowledgements

About the Author

Publishing details.

Notes:

Description based on print version record.

ISBN:

9780857198778

0857198777