Managed funds.
Do mananged funds, given a fee is involved, do as well as index funds? Thank you, Terry.
Terry Says
Not over the long run according to statistics. But if you pick the right fund, you might "beat" the market indexes. Just that you have very long odds of picking the right managed fund! Take a look at these stats:
Tough for active managers to beat their benchmarks consistently
| Fund category | Benchmark | Percentage of funds that outperformed in the subsequent year |
|---|---|---|
| Large-cap | S&P 500 | 33.93% |
| Mid-cap | S&P MidCap 400 | 30.39% |
| Small-cap | S&P SmallCap 600 | 35.25% |
| International | S&P 700 | 36.68% |
