Mutual Funds --With Management or With Indexes?

Experience and research show that the so-called “best” managed mutual funds in any year are achieved mostly by chance.

In any category of mutual funds, only a small percentage of active managers beat the performance of indexes or unmanaged funds. Furthermore, those who have distinguished performance in any one year, generally cannot repeat their performance the next, or on any consistent basis.

Few managers can outperform indexes over a few years time, and if they do, it is pure luck, not ability. (See the Earl J. Weinreb NewsHole® commentaries.