Re: Why Mutual Funds are better than Index Funds
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Secondly, there are still the remaining 20% that outperform the market with proven track records and excellent managers at their helm.
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I thought only 20% outperform the indexes in a given year. Only a couple have done it for over a decade or so. These also tend to be the funds with higher variance than the indexes, not steadier gains (generally because they have more concentrated portfolos). Bill Miller's teams in the 90's or Peter Lynch's in the 80's come to mind. But as their assets grow, their chances of beating the market are likely to diminish. Index Funds are and should remain the safest way to get the best return for the least work for any equity investor.
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