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Ot investing 101 - Index vs. actively managed funds. There's a big difference

johnNjohnN
in The OT Bullpen
http://www.lowellsun.com/business/ci_32157671/index-vs-actively-managed-funds-theres-big-difference

Lowell Sun
Unlike actively managed funds, index funds make no attempt to select which investments will be hot. They simply invest in all stocks or bonds within index

Many studies over the years have consistently shown over time that index funds outperform actively managed mutual funds. According to the S&P Dow Jones Indices SPIVA (S&P Indexes vs. Active management) study, more 86 percent of all actively managed U.S. stock funds have underperformed their index during the last 10 years. Eighty-three percent of actively managed government bond funds underperformed their index as well.
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