"Nine out of ten US equity funds failed to beat the market over the past year, according to a new study that undermines active managers’ claims that they can outperform in more volatile markets.
The semi-annual report on fund manager returns, produced by S&P Global, has long been depressing reading for professional stockpickers, but the scale of the disappointment in the latest figures is likely to fuel further outflows from an industry that is already under pressure.
Money has been draining out of actively managed funds and moving into index-tracker funds at an accelerating pace this year."
So what does one get in a managed fund? High costs, and expenses, and poor results. Who would sign up for that?
Not me. I long ago when to index mutual funds, with low costs, which track the S & P 500, the top 1000, the total stock market, or an international index fund. My investing is simple. I reap the rewards of the market. I have little investment stress.
My allocation is 75% US, 25% international, but you could choose differently.
"There was not a single category of domestic fund — whether investing in large-caps, small-caps or a combination, or favoring growth stocks or value stocks — in which more than a quarter of managers succeeded in beating their category benchmark.
“There is nothing redeeming to say about the managers in the equity space,” said Aye Soe, global research director at S&P."
Or you can try to outdo the professionals. Good luck.