Research : Fund Comparison 2011

AS I state in the introduction:

In last year’s review of Canadian preferred share funds, I discussed the explosion in the number of decision-makers in the investment market-place; the decline in Defined Benefit pension plans and corresponding increase in Defined Contribution plans and other forms of saving have changed the investment world from one in which the decisions were made by a relatively small group of specialists to a world in which investment management is just another consumer good. This change has resulted in an explosion of consumer choice and a consequent rise in the importance of marketing to the success of any investment product, as opposed to old-fashioned concepts such as risk and return.

In this essay I will discuss

  • • the manner in which investment decisions – particularly with respect to index funds – are made
  • • the use of derivatives by index funds
  • • the explosion in the number of indices in recent years, as the notion of passive investing has become more fashionable

The 2010 comparison is available via THIS LINK.

Look for the research link!

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