"Then I will have populated my portfolio in a very basic sense," he says.
With that foundation, investors can go on to use actively managed funds to fill in holes.
"This is what we do here: We bracket (the index funds) in each of the sectors with two active managers. We use institutional, no-load fund managers and we'll put in two active managers who have a certain bent in the way they approach things that give them a business-like advantage," says Fragasso.
There are no guarantees, but it's a good bet that it will beat random chance.
What do you think about efficient markets?
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