Jason Zweig is an eminent personal finance columnist in the US and has written famous books such as “Your Money & Your Brain.” He edited the revised edition of Ben Graham’s perennial classic “The Intelligent Investor.”
I am posting a link to an excellent article titled I don’t know and I don’t care written for the media in 2001.
He narrates his experiences about ‘picking’ hot funds and ‘star’ managers...finally he realizes that it would be more logical to invest in broad market index funds.
Indexing give you the freedom to say I don’t know and I don’t care...because you do away with the need to forecast and identify the next hot stock or manager.
Individual stocks and managers represent additional risks (over and above the market risk) and these often remain uncompensated!
Indian investors & investment advisors should also try and understand the logic of indexing as explained by Jason Zweig.
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