Why it’s best to choose low-fee funds over high-performing funds

  • But first: 10th anniversary of this segment coming up. Here’s how to win a book!
  • Research shows 2024 was a great year for NZ-based world share funds…
  • … and NZ share funds did well too
  • But was your fund’s performance all that strong? Most funds did worse than the share index.
  • Especially true with long-term returns
  • Adjustments for survivorship bias — many funds closed down
  • Conclusion: Outperformance doesn’t last. Choose low-fee funds.

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Mary Holm, ONZM, is a freelance journalist, a seminar presenter and a bestselling author on personal finance. She is a director of Financial Services Complaints Ltd (FSCL) and a former director of the Financial Markets Authority. Her opinions are personal, and do not reflect the position of any organisation in which she holds office. Mary’s advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following it. Send questions to [email protected] or click here. Letters should not exceed 200 words. We won’t publish your name. Please provide a (preferably daytime) phone number. Unfortunately, Mary cannot answer all questions, correspond directly with readers, or give financial advice.