Tracking down the truth aboutindex funds

Professional Adviser
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Trackers traditionally outperform in bull markets so investors looking to position themselves for recovery should buy now. But getting a fund to track the index accurately is not as simple as it sounds

After several years of equity market declines, it is hard to see why anyone would want a fully invested equity product. Yet this is precisely the time when index funds might be a shrewd choice. Statistical work done at Standard Life Investments shows that in a bull market, index funds outperform the median active manager. Conversely, in a bear market, the median manager outperforms the index fund. This is what has happened in the current bear market. If investors are to position ourselves for a market rally, then being fully invested with an index fund is likely to be a winning strategy....

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