2. Why You Should Manage Your Own Funds
The second critical investment choice which you have to make is whether or not to manage your own funds.
Fund management options
Having decided to invest long-term in equities you can choose to:
- Manage your own equity funds by running your own portfolio of shares and/or following strategies which use low-cost index-tracking funds, such as FTSE100 ETFs. ETFs mechanically replicate the performance of the index which they are tracking by holding the constituent shares of the index.
- Buy units in one or more actively managed funds (e.g. a unit trust) in which the fund manager attempts to outperform their benchmark index by buying shares which they believe will perform well.
- Appoint ...