You might want to believe in gurus. That market timing, stock selection and active management add value. That smart investing is about selecting funds or investment managers that can outperform others.
But this means speculation - making a judgment and only profiting if it proves correct. Speculating about the future is risky. The future is uncertain and investment managers can't make promises about your stock prices or personal performance. So basing your portfolio choices on promises that can't be kept may not actually be that smart.
There's simply no credible evidence to support the idea that active management enhances your investment results. In fact, the overwhelming evidence is that neither individual stock selection, nor market timing strategies add sufficient value for you consistently enough to outweigh their cost to you.
You need an investment strategy that puts you in control. Modern portfolio theory, based on Nobel Prize winning research, demonstrated that the most prudent approach to minimising risk and maximising the probability of achieving the average expected index return is to hold the entire stock. This approach puts the key drivers of your investment success within your control. Markets work and risk and return are related. Intelligent asset allocation determines the vast majority of investment return. Our approach helps you to set strategic asset allocations based on your risk profile, without the need to predict markets.