Stop looking for the best mutual fund managers when you choose funds to buy. Experience and research show that the so-called “best” in any year are achieved mostly by chance.
In any category of mutual funds, or for that matter exchange traded funds (ETFs), only a small percentage of active managers beat the performance of indexes or un-managed funds. Furthermore, those who distinguish themselves in any one year, generally cannot repeat their performance the next, or on any consistent basis.
A very isolated few managers can outperform indexes over a few years time, and if they do, it is pure luck, not ability.
No comments:
Post a Comment