Funds
The Modern Funds specializes in index funds - funds that follow a pre-defined index. Time after time, index funds have earned a return that is just as good, or even better, than that of actively managed funds. The fact that they are index funds also enables us to charge very low fees. Our management fee is only 0.3% for our fixed income funds and 0.4% for our equity funds.
So-called managed funds charge higher fees.
Most people have so far opted to invest in conventional managed funds. If you do that, you will be entrusting your capital to an individual manager who will try to pick the securities that will perform best. And you have to pay more for this. Naturally, you should demand of the individual manager that your fund outperforms the average (the index) each year.
