🗓️ 15102025 0036
Core Concept: Accept market returns via low-cost index funds rather than trying to beat the market.
Why It Works
80-90% of active managers underperform benchmarks over 15+ years. Lower fees (0.1-0.3% vs 1-2%) mean more compounds. No research or timing needed.
Strategy
Buy and hold diversified exchange_traded_funds:
- Track broad indices (S&P 500, MSCI World, STI)
- Invest regularly
- Rebalance annually
- Hold decades
Singapore: ES3 (STI), CSPX (S&P 500), IWDA (MSCI World), or robo-advisors (Syfe, Endowus, StashAway)
Trade-offs
Pros: Simple, low cost, proven, low stress
Cons: Can't outperform market, must endure 20-30% crashes, requires patience
Best For
Long-term goals (10+ years), busy professionals, beginners, low-stress investors
References
- "A Random Walk Down Wall Street" by Burton Malkiel
- financial_planning exchange_traded_funds value_investing technical_analysis