9 Ways to Pursue a Better Investment Experience

9/13/2018

Embrace Market Pricing:
- The market is an effective information-processing machine
- Real-time information help set prices
Don't try to outguess the market:
- Only 14% of US equity mutual funds and 13$ of fixed income funds have survived and outperformed their benchmarks over the past 15 years
Resist chasing past performance:
- Past performance offers little insight into a fund's future returns
Let markets work for you:
- Financial markets have rewarded long-term investors
Practice smart diversification:
- Holding securities across many market segments can help manage overall risk
Avoid market timing:
- By holding a globally diversified portfolio, investors are well positioned to seek returns wherever they occur
Manage your emotions:
- Reacting to current market conditions may lead to making poor investment decisions
Look beyond the headlines:
- Daily market news and commentary can challenge your investment discipline
Focus on what you can control:
- Create an investment plan to fit your needs and risk tolerance
- Structure a portfolio along the dimensions of expected return
- Diversify globally
- Manage expenses, turnover and taxes
- Stay disciplined through market dips and swings