Last Friday, me and my wife, we were directly in the heart of the beast:) – at an investing fair in Vienna, Austria. The fair was organized by finance magazine Gewinn. I have never been at such an event before, so we decided to go. I took a day off at my work and off we went. As I expected, the enemy was prepared really good – there were stands of various banks, money management companies, mutual funds, or brokers.
I do not want to sound over pessimistic, however, I had the feeling that those guys were more after the fees they can reap from investors than the help to investors to achieve at least market-like returns when adjusted for risk. Besides the stands, there also were a bunch of presentations of brokers on e.g. the technical analysis, on whether it is now wise to invest into stocks, commodities, or bonds… Simply said – ‘paradise’ for active investors and ‘hell’ for the passive investors. As for my part, I am definitely in the camp of the passive ones.
From among all participants, I was affected by an investment club from Austria that groups fine art enthusiasts. They invest their own money, decide collectively what to invest into. What is more, they do it out of passion for art. Corresponding is their management fee – 0.4% p.a. I am not a fine art expert, but I am sure that this is a pretty low fee when you consider active equity funds that collect cca 1.5% p.a. whereas stocks are a lot easier to trade. Of course, this should not be deemed as an investment advice. Nevertheless, at first sight they have my sympathy. They started in the spring of this year and manage currently a bit more than 300 000 EUR. I am curious how will they do in the future.
A few pics from the fair: