Active investing is hard
Market returns are usually defined by the benchmarks e.g. STI index returns. Active investors should not be satisfied with achieving market returns. Significant efforts are undertaken to pick stocks and customize a portfolio. This must be compensated by above market returns. Otherwise, isn't the time spent unwarranted? How do we pick stocks? This is as simple as entering the stock code and clicking the buy button. Or it can be as hard as doing balance sheet analysis, profitability forecasts, valuation calculations, industry research, peer comparisons, studying of historical and forward trends. Each topic by itself may require some significant technical knowledge and is not easily available for the average investor. However, all the effort incurred to determine that a stock is worth a place in our portfolio doesn't guarantee that it will outperform the market. Unsystematic risk is always present. The industry might be hit by black swan event. An obvious example during t...