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 un-managed 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® comments and @BusinessNewshole at Twitter.)
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