To promote investing in passive index funds, many financial advisors quote statistics on how most actively-managed mutual funds underperform their benchmark index. Yet, a lower percentage of index funds beat their benchmark than actively-managed funds. Read InvestSimply’s new report to learn how index investors can still come out ahead.

InvestSimply today announced the publication of their latest whitepaper: “Five Secrets of Index Fund Investing.” The rallying cry of many people preaching the gospel of index investing is that most active fund managers can’t beat their benchmark index, so if you invest in passive index funds, you will come out ahead. Yet very few index funds beat their benchmark. In fact, a lower percentage of index funds outperform their benchmark index than actively-managed funds.

This is just one of five investing secrets illustrated in this new whitepaper from InvestSimply, a web-based portfolio management service. “Although we are strong believers in the superiority of index funds,” said InvestSimply’s founder Steven Geri, CFA, “investors need to be aware of the dogma surrounding passive investing and invest with a balanced understanding of what is required to succeed.”

Five Secrets Successful Index Fund Investor Should Know:

  1. Almost All Index Funds Underperform Their Benchmark Index
  2. Fund Expenses Matter – A Lot
  3. Exchange-Traded Funds (ETFs) May Be Better than Index Mutual Funds
  4. Similar Sounding Index Funds Track Different Indices
  5. Asset Allocation Trumps Fund Selection

Download complete whitepaper at:

“Investors in passive index funds can likely outperform most actively-managed fund investor, but it is not automatic,” Mr. Geri added. “As with other uninformed decisions, blindly investing in index funds can be hazardous to your wealth.” Realizing your best investment return still requires good decisions based on thorough analysis and deep investment knowledge.

InvestSimply is a web-based portfolio management service and an SEC registered investment advisor. Investors select a diversified, risk-managed investment portfolio after completing an online survey of their investment experience, time horizon and other factors. InvestSimply’s investment recommendations are made independently, based on analytical research, and not influenced by any brokerage firm, investment bank or mutual fund company’s self-serving interests.

Investors may obtain more information on InvestSimply by visiting the website at

Contact:  Steven Geri, InvestSimply, 800-928-6170

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