Originally Posted by
SailorRob
No, I think it will destroy the average investor and there is no way they will be able to construct a better portfolio. The average investor is lucky to do 2% over the long term.
I think the service is a good idea from a choice perspective but having that choice will not be good for most punters. Like having the choice to smoke ciggies...
I was forced into Kiwisaver and used Craigs as I can pick stocks for myself and went 100% BRK, since doing so have destroyed every single kiwisaver fund in existence and will continue to do so, if fees are lower in Sharsies I will swap.
To answer your question, just look at Sharsies retail stats and see what people were buying and when, everyone will try to time the market and buy the latest hot thing and kill their retirement fund.
To think the average investor can pick stocks and outperform the profession managers is ridiculous, but they could all outperform if they just indexed.
Will be virtually impossible to get 8.5% from the index over the next 10 years unless inflation is high and persistent.
I think perhaps you are dramatically underestimating how hopeless the average investor is.
Do I think that BaaBaa or Maverick could use the service to pick their own stocks and outperform the managers, yes absolutely.