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What's Driving The Decade Of Outflows From Actively Managed Mutual Funds
FYI: After a decade-long run of steady net outflows, the actively managed mutual fund space could use a good old-fashioned bear market. A down market, some argue, is where active managers will really stand out and prove they can still earn their keep. Regards, Ted http://www.investmentnews.com/article/20160508/FREE/305089998?template=printart
The title is a bit deceptive) but the answer to the question raised by the title is that mutual fund investors expected their active managers to protect then from 2008 type markets but in fact index funds continued to outperform though with a smaller margin. Then the risk adverse tried investing in the funds that did well in 2008 (Hussman funds anyone ) Finally after the whipsaw they worked out that on average index funds were a better bet. I don't doubt that several American funds (referenced in the article outperformed but am pretty sure it took years to be ahead considering the fees and loads
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