📈 Why Index Funds Keep Winning
Most people do not lose money in investing because they are stupid.
They lose money because investing gives intelligent people too many chances to interfere.
Pick the right stock.
Time the next correction.
Avoid the bad sector.
Find the hidden winner.
Sell before the crowd.
Buy before the recovery.
It sounds active and responsible.
But over long periods, many professional fund managers struggle to beat a simple low-cost index fund after fees. That should make ordinary investors pause.
Index funds work because they remove a lot of human error.
They do not need you to predict the next winner.
They do not need you to read every earnings report.
They do not need you to guess which CEO will become a genius and which one will become a documentary.
They simply buy a broad slice of the market, keep costs low, and let time do the heavy lifting.
That is boring.
Which is probably why it works.
The danger with index funds is not usually the fund itself. It is the investor holding it. Panic selling, chasing trends, switching strategies every six months, and checking the balance like it is a sports score can turn a sensible plan into a bad one.
For many average investors, the hard part is not finding a clever strategy.
The hard part is accepting that simple, diversified, low-cost and patient may already be clever enough.
General information only. Not personalised financial advice.