Q: I know you recommend index funds for their low fees and generally superior performance.

However, with Covid-19 expected to bring many business failures in tourism, hospitality, aviation, etc, would you still recommend index tracking funds for investors with some spare cash to put into the sharemarket?

Or do actively managed funds actually offer an advantage at this time in being able to predict sectors in trouble and avoid them?

A: Yes to your first question, and no to your second one.

Managers of active share funds — in and out of KiwiSaver — select which shares to hold, and when to buy and


Beating the market?

Biased? Me?