Quote:
Originally Posted by LT22
I would LOVE to find mid-20's return with lower risk than stocks. lol
|
These types of investments exist, and they exist across a large variety of financial instruments and businesses. However, they are not easy for a casual investor (or a pro investor for that matter) to locate, access and evaluate. You aren't going to find them in your 401K or on Morningstar.
If you want a well-known example, check out Renaissance Technologies' medallion fund. According to wiki, in their 12-year history they've achieved 35% after fees. Their fees are 5% management and 36% of profits, so if you back out the fees they must be achieving around 60% returns. They're doing this on $15 billion, which is much much harder to achieve than it would be on say $15 million.
Those fees also show why you don't find these investments in your 401K. If a fund manager can consistently achieve high returns, why would they settle for the paltry fees that a mutual fund pays? They wouldn't unless they hate money, and that's not a common sentiment on wall street
Re: 401K
Linear Mode
