Take a look at the two funds shown in the chart below with their annual performance vs. their respective benchmarks. Which one of these funds would you rather invest in? If you had $10,000 to invest, how much would you allocate to fund 1 and fund 2?
I find your notes very incisive. Would you perhaps have some thoughts on option selling?
I would add that if you don't understand the strategy, one can have the idea that fund 2 shows persistence while fund 1 could be a random shot.
I’m a little confused. If the two funds are designed to have the same return, why are the benchmarks so different?
I find your notes very incisive. Would you perhaps have some thoughts on option selling?
I would add that if you don't understand the strategy, one can have the idea that fund 2 shows persistence while fund 1 could be a random shot.
I’m a little confused. If the two funds are designed to have the same return, why are the benchmarks so different?