FYI: Numbers can be tortured until they say almost anything, but some recent mutual fund statistics could get investors to defy conventional wisdom and think they’re being smart.
The numbers here are saying that it’s possible for active management — a money manager trading in and out of securities — to outperform passive management, where a fund company merely replicates an index.
Conventional wisdom says passive management is better because a majority of funds routinely fail to beat the benchmarks they’re measured against. There’s no denying those numbers, which is why so many investors have adopted passive strategies
Regards,
Ted
http://www.marketwatch.com/story/this-is-why-mutual-fund-managers-cant-beat-a-stock-index-more-often-2016-04-14/print
