FYI: Despite the evidence showing that past performance is a poor predictor of future mutual fund performance, mutual fund families know that a majority of investors believe this is not the case. Mutual fund families exploit that lack of knowledge, not only by charging high fees for actively managed funds that underperform an appropriate risk-adjusted benchmark, but in an way that most investors are likely unaware of.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-ipos-used-suck-investors?nopaging=1
