What are the short term (3-5 years) and long term (5-15years) advantages/disadvantages traditional vs. Computer managed investment firm.

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    by computer managed to you mean a index tracker vs a fund that makes active choices - all investment companies use computers these days
    – Pepone
    Feb 15, 2015 at 12:36
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    What do you mean by "investment firm?" I interpret it as broker (so you are asking about discount vs traditional brokerages) but others seem to be interpreting it as an index fund vs mutual fund question. I wouldn't say index funds are necessarily more "computer controlled" than mutual funds.
    – farnsy
    May 17, 2015 at 16:35
  • Are you asking about so called Robo-advisors like Wealthfront/Bettermint?
    – rhaskett
    Jun 15, 2015 at 22:39

1 Answer 1


If by "computer" you mean index: traditional funds charge much higher fees. That means they have to do that much better than the index funds just to be equivalent, and preferably better. In many cases they really don't, making the index fund the winner.

BUT that's a generality, which may not aply to any specific fund or funds. Do your homework.

  • Thanks. I will do my homework. Index funds us what I was referring to
    – user2960
    Feb 15, 2015 at 23:55

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