To any fund manager out there that truly believes you can beat the market, here is how you can sell me your fund:
We agree on an index and a time frame. You guarantee me the same return as the index within that time frame. If you beat the index, you keep 90% of returns ABOVE the index (and I get 10%). We both win, and you win big.
If you don't beat the index (within the time frame), you make up the difference (so I get the return to the index).
We agree on an index and a time frame. You guarantee me the same return as the index within that time frame. If you beat the index, you keep 90% of returns ABOVE the index (and I get 10%). We both win, and you win big.
If you don't beat the index (within the time frame), you make up the difference (so I get the return to the index).