The main reasons why large funds fail to outperform the inde...
The main reasons why large funds fail to outperform the index include: 1. Collective decision-making. Investments that involve everyone in the decision-making process can only achieve the average and cannot achieve greatness. 2. Herd mentality. Following the crowd and maintaining a similar investment portfolio to other large institutions. 3. Institutional restrictions. The consequence of fund managers acting independently is that if they make money, they don't have much profit, and if they lose money, they have to bear the responsibility, so it's best to follow the middle path. 4. Diversified investments. Not concentrating investments in high-quality assets will inevitably lower the yield. 5. Inertia.
The main reasons why large funds fail to outperform the index include: 1. Collective decision-making. Investments that involve everyone in the decision-making process can only achieve the average and cannot achieve greatness. 2. Herd mentality. Following the crowd and maintaining a similar investment portfolio to other large institutions. 3. Institutional restrictions. The consequence of fund managers acting independently is that if they make money, they don't have much profit, and if they lose money, they have to bear the responsibility, so it's best to follow the middle path. 4. Diversified investments. Not concentrating investments in high-quality assets will inevitably lower the yield. 5. Inertia.
The main reasons why large funds fail to outperform the index include: 1. Collective decision-making. Investments that involve everyone in the decision-making process can only achieve the average and cannot achieve greatness. 2. Herd mentality. Following the crowd and maintaining a similar investment portfolio to other large institutions. 3. Institutional restrictions. The consequence of fund managers acting independently is that if they make money, they don't have much profit, and if they lose money, they have to bear the responsibility, so it's best to follow the middle path. 4. Diversified investments. Not concentrating investments in high-quality assets will inevitably lower the yield. 5. Inertia.
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