The Risk of Managed Funds

Investors should consider mutual fund manager risk. They do this when choosing an investment portfolio that's fully and actively managed.

To choose managers, they must rely on past performance which is not reliable, as evidenced by independent research.

Furthermore, many funds use a staff or committee system of a managers, not a single individual. Also, mangers come and go, in a game of musical chairs. ( See the Earl J. Weinreb NewsHole® comments.