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When Indexing Is Not an Improvement

When Indexing Is Not an Improvement
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Nithin Kamath: The man who disrupted broking now aims to create India's own Vanguard


NEW DELHI: After pioneering discount broking in India, Zerodha founder Nithin Kamath is aiming to create an Indian version of Vanguard, the Pennsylvania, US-registered investment adviser that offers high-quality, low-cost mutual funds, ETFs, advisory and related services.
The US fund house, founded by John C Bogle and credited as a proponent and major enabler of low-cost investing, is one of the world’s topmost wealth managers with about $6.2 trillion in global assets under management.
Kamath said retirement investing would be his key focus, and he plans to take on established fund houses in this pursuit.
Starting his broking venture on a bootstrap budget, Kamath has changed how India trades in stocks in last 10 years. His disruptive business model uprooted many traditional brokers and has been copied by those who managed to swing with the change. ....

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American Funds Target Retirement Delivers, on Its Own Terms


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American Funds’ target-date series is proving investors still have an appetite for actively managed strategies, and it’s doing it the old-fashioned way: with below-average fees and long-term performance that leaves most peers far behind. But as some of the favorable market conditions that boosted its results start to reverse, can it keep up?
American Funds has been the only target-date provider of its kind in the top five target-date flow-getters in the past four years, an all-active manager bucking the trend of low-cost index-based series storming the charts. 2020 was another blockbuster year for the series, raking in $13.5 billion in inflows while the overall target-date market was in net outflows. For the last decade there’s been a seismic shift in money flowing away from actively managed funds and toward cheap passive alternatives. Target-date funds have been no exception to that trend and in 2020, despite flows turning negative for the first time, sh ....

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