I am not sure, how many market pundits predicted that markets will rise 60% in such a short time.In Jan 2008, when markets hit 21k, we heard predictions like 30k or 40k but we all know what happened.
My point is that its very very hard to predict the market. A lot of self styled "experts" try to make predictions, even if they do get it right its impossible to be consistently right. I would not like to give my hard earned money to these guys.It has also been proven over the years, that even the best fund managers under perform the index over long term.
Given the above problem, how can we benefit from this -why not choose a strategy whict at least guarantees you returns which mirrors markets returns.
Index funds and ETF allow you to do just that.Refer this link for differences. Will discuss more about ETF in next post.
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