The most important tips from financial experts for investment beginners - Active funds or ETFs: Which strategy suits me better?

The most important tips from financial experts for investment beginners - Active funds or ETFs: Which strategy suits me better?

According to a report from www.businessinsider.de, four financial professionals debated the advantages and disadvantages of ETFs and active funds at the Fund Women's Summit in Mannheim. Important tips for investment beginners were given. A current evaluation by the analysis house Scope showed that in 2023 only a quarter of the actively managed funds examined managed to outperform their benchmarks. This raises the question of whether active strategies are even worthwhile. Stephan Fritz von Flossbach von Storch is convinced that active strategies can deliver better results in phases with a lot of movement on the markets and especially in small caps. ETFs specialist Hofmann from Vanguard agrees that the more niche the investment, the more active strategies are worthwhile. However, she warns against trying to beat the S&P 500 in the long term, as this is almost impossible. Fritz argues that passive investing requires a more patient approach because investors tend to exit too early. However, ETFs have the clear advantage of lower costs. The important tips from financial professionals for investment beginners are to invest early, diversify widely, define goals, follow through with the strategy and not be unsettled by market movements. Disclaimer: Stocks and other investments generally involve risk. It does not replace professional advice and is not a solicitation to buy or sell securities or rights.

As www.businessinsider.de reports, a current evaluation by the analysis house Scope showed that in 2023 only a quarter of the actively managed funds examined managed to outperform their benchmarks. This raises the question of whether active strategies are even worthwhile. Stephan Fritz von Flossbach von Storch is convinced that active strategies can deliver better results in phases with a lot of movement on the markets and especially in small caps. ETFs specialist Hofmann from Vanguard agrees that the more niche the investment, the more active strategies are worthwhile. However, she warns against trying to beat the S&P 500 in the long term, as this is almost impossible. Fritz argues that passive investing requires a more patient approach because investors tend to exit too early. However, ETFs have the clear advantage of lower costs. The important tips from financial professionals for investment beginners are to invest early, diversify widely, define goals, follow through with the strategy and not be unsettled by market movements. According to a report from www.businessinsider.de.