%0 Journal Article %A James Chong %A G. Michael Phillips %T When “Dartboard Investing,” It Helps to Pick the Right Dartboard: A Comparison of Randomly Selected Stock
and Fund Portfolios %D 2011 %R 10.3905/jwm.2011.13.4.060 %J The Journal of Wealth Management %P 60-67 %V 13 %N 4 %X When randomly selecting assets for a portfolio, are clients better served by financial planners choosing individual stocks or a group of mutual funds? It depends. For the financial planner, it remains vital to know a client’s trade-off between the possibility of a higher return from stocks, with commensurate chances of loss and the chance for more predictable, but lower, returns obtainable from purchasing portfolios of mutual funds.TOPICS: Manager selection, mutual funds/passive investing/indexing, performance measurement %U https://jwm.pm-research.com/content/iijwealthmgmt/13/4/60.full.pdf