Disciplined Investments: A Great Way To Raise Fund Performance

The average investor performance compared to an index like S&P 500 will indicate a lag in between the two. The reason for this lag is due to two main factors. The first one being, people like to buy when the stock market is going up and will sell when the market is going down, this is not a great way to manage money. The other factor is people rack up a lot of expenses either through trading or use expensive investment products, mutual funds and thereby go on chasing performance.

To avoid this one has to know the right path, and assess the amount of risk that should be taken to attain one’s objectives. Investing money should always be in the balance and should have greater discipline. People should always pay attention to their behavior and expenses and this is very critical in managing their investments appropriately.

The recent Nobel Prize winners, Eugene Fama and Kenneth French who are associated with dimensional fund advisors received it because of their great fund performance. The performance is a result because of their approach. The choice of stock was not a singular one nor was the individual sectors or companies targeted. The intention of the approach in a simple way was to get maximum returns for a given amount of risk and to get it for a very long time consistently. 

Aaron Hillman
Aaron Hillman
Certified Financial Planner, Skyline Financial Northwest
Aaron Hillman is a Certified Financial Planner at Skyline Financial Northwest. Aaron attended the One year graduate program in Portland for financial planning. Prior joining to Skyline, Aaron worked as an Electrical-Mechanical Engineer for 13 years