this post was submitted on 14 Mar 2025
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A well-researched piece of journalism on the history of our Canada Pension Plan and how it is currently being managed.

TL; DW: For a while, we had a passively managed CPP fund. Then we switched to an actively managed fund which currently costs us over a billion dollars to manage each year. The rational for this switch is that an actively managed fund can outperform a passively managed fund. Has it? (No, it has not)

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[–] OminousOrange@lemmy.ca 6 points 4 days ago

It's the same thing with your personal finances. All the financial ~~salespeople~~ advisors will tell you to buy actively managed funds because they ~~get paid more~~ can beat the market.

I fired my first advisor after learning about passive investing and she literally said, "you can't beat the market if you are the market." I resisted the urge to request a guarantee that that would happen, but I did track the difference between my actual investments and if I stayed with an actively managed fund with similar holdings. Unsurprisingly, I'm tens of thousands richer today than I would've been.

If the market is up or down, fund managers are still going to take their 2.whatever% cut. I much prefer the 0.2% I pay.