Research shows how to reduce cost of modern investment strategies
Sunday, July 19, 2015 - 19:20
in Mathematics & Economics
New research shows how investors can significantly reduce the cost of implementing portfolio strategies – in some cases by more than 90 per cent. The study shows that many modern investment strategies often lead to low returns or even lose money in practice, as they are prone to large trading costs. Such costs include bid-ask spreads, brokerage fees and capital gain taxes and can dramatically affect investment returns, turning an otherwise winning strategy into a losing one.