Re: Why Mutual Funds are better than Index Funds
Now, if Warren Buffet said that an intelligent person who used the value investing style could not only beat the index but also Berkshire Hathaway (and value inveting is inherently less subject to fluctuation than the normal index) than a good value minded fund manager should easily overcome the 2% or so MER and deliver good long term performance. The handicap of huge holdings is much less than BRK anyway. This type of fund should easily beat the index.
PS The financial planner can also get away with overcharging the clients too
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