Q. How to beat S&P 500 index each year?
A. S&P 500 index represents some of the large cap stocks, while it's possible to invest in S&P 500 index funds to get really close to index's performance each year, there is no sure way to beat the index year by year.
However, if you know that large cap stocks tend to have lower long term return than small cap stocks, then you can build up a diversified portfolio and expect to beat the large cap S&P 500 index comfortably over a long term.
How to build up such a diversified portfolio? Check out the 3-step approach in our Smart Investment section.
A. S&P 500 index represents some of the large cap stocks, while it's possible to invest in S&P 500 index funds to get really close to index's performance each year, there is no sure way to beat the index year by year.
However, if you know that large cap stocks tend to have lower long term return than small cap stocks, then you can build up a diversified portfolio and expect to beat the large cap S&P 500 index comfortably over a long term.
How to build up such a diversified portfolio? Check out the 3-step approach in our Smart Investment section.
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