Why Buy Managed Mutual Funds?

Don’t bother looking for the best mutual fund managers. You will be

wasting your time. Experience and research show that the “best” 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 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 the years, and if they do, it’s pure luck. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)