Why So Many Mutual Funds Can’t Beat the Indexes
Investing in stock indexes doesn’t require any skill in stock picking at all. How can no skill beat the presumed skill of fund managers? They obviously aren’t using much skill.
Actively managed mutual funds have quite a few limitations versus what we can do with our own accounts as individual investors. If we are considering investing in an active fund, it’s always important to look at what other approaches we could take instead, and how active mutual fund investing stacks up to these other approaches, so we will at least be in a better position to decide.