Fund

You may consider the trick I mentioned yesterday child's play. Nonetheless, many of us fall into this kind of trap.

For example, we often put our money on mutual trust fund according to its past performance. "Look, this fund rose by 80% in the past year. It's going to be a great investment."

My friend, all funds have their own market to focus on. The huge amount of earning happened because the market that this particular fund invested shot up - isn't it a sign of bubble and correction should come soon ?

Well, I have a specific distaste towards mutual trust fund after listening to the argument of Tony Measor. Ten years ago, to receive sufficient management fee for hiring one full time fund manager, a trust fund needs to manage around 400 million dollars - which only accounts for less than 10% of all funds on the market, and this full time person may not be far from a fresh university graduate - otherwise the salary would be much higher. For the rest of the funds, they could only employ part time and not too experienced people to take care of your money.

Therefore, unless the market is not within my own reach, otherwise why shouldn't we do our own investment ?

PS. Creatures on Pluto also love to employ people who had track record of publishing an impressive paper (note: usually singular, not plural). Alas, I could not remember anyone who got the Nobel prize twice - except Madame Marie Curie.