You kick off your investing journey with your heart and mind set on beating the market. But how should you go about achieving your objectives? By investing your money in a mutual fund run by a fund manager? Surely, only professionals can outperform the market, right? Wrong!
Fund managers, on average, get crushed by the market
We're led to believe that entrusting our money with fund managers is the best option if we want to invest successfully. In fact, fund managers, on average, aren’t outperforming the market but are rather being crushed by it.
According to a US equity strategy note out from JPMorgan, 67% of mutual funds underperformed their benchmark in the third quarter, with 34% underperforming by at least 2.5%. If you simply track a market index using an ETF you would've achieved better returns than the average fund manager.
The worst part is, even though your fund manager misses the mark completely, you still pay him for his service. Which means you're inadvertently paying someone else to lose your money – a practice I would never recommend.
But fear not! All hope isn't lost.
I'm here to inform you that you don’t need a ‘professional’ to manage your investment. You can earn market-beating returns on your own by incorporating an intelligent stock picking and portfolio management tool to your investment strategy.
You think it's impossible? No need to take my word for it, let me show you the proof.
STRIDE performance compared to global market indexes
To display the effectiveness of STRIDE, as a stock picking and portfolio management tool, we created a series of model portfolios in the platform according to specific regions.
Each portfolio opened with $100,000 on the 1st of November 2012. Today, after running these portfolios for three years, we can show you how much $100,000 would be worth if you had followed the rules of 3D Value Investing. The returns represent total shareholder return, including dividends.
STRIDE’s performance is then compared to the biggest markets in every single region, to show you how you can consistently beat the market by using STRIDE as an investment tool.
STRIDE Global vs. S&P 500, FTSE 100 and Euro 600
STRIDE Global: our original $100,000 is now worth $188,480.
We're beating this region by an average of $57,480.
STRIDE US vs. S&P 500, Dow Jones and Russell 2000
STRIDE US: our original $100,000 is now worth $203,980.
We're beating this region by an average of $62,300.
STRIDE UK vs. FTSE 100, FTSE AIM and FTSE 350
STRIDE UK: our original $100,000 is now worth $164,070.
We're beating this region by an average of $55,430.
STRIDE ASIA vs. Hang Seng, Nikkei and ASX
STRIDE ASIA: our original $100,000 is now worth $154,220.
We're beating this region by an average of $11,310.
STRIDE Europe vs. DAX, Euro 600 and FTSE 100
STRIDE Europe: our original $100,000 is now worth $180,390.
We're beating this region by an average of $48,480.
We've included full trade logs that show you the buys, sells and dividends. These are "warts and all" views that show everything - the good, the bad and the downright ugly. You can find it all on our new performance page.
The Little Acorns Portfolio is smashing the market
It is the one year anniversary of the Little Acorns Portfolio – a diversified, value investment portfolio run by a working mum who decided to take charge of her investments to secure her future. If you're not familiar with it, then feel free to go read it from the beginning here.
If you're already familiar with it, you may just want to read the latest review.
To save you some time, these are the highlights.
This performance has been achieved keeping over 20% aside in cash and paying over 2% in fees due to the location of the portfolio and the fees charged by the bank there. Furthermore, the portfolio is reporting in USD, and the dollar is sitting very close to its 52 week high - which has had an impact, but only in a reporting sense. Follow the links above to get the full breakdown.
STRIDE consistently outperforms the market, while fund managers, on the other hand, are constantly being crushed by the markets. Which option is the wiser choice for securing your financial future – a fund manager or an intelligent investment tool? You do the math.
We’ve been running our free trial for the past five months and this has really helped people get a feel for the platform. If you haven't tried it yet, feel free to sign-up for our easy, no commitment (and NO card details required) free trial by clicking here.