The managers of mutual funds have tended to outperform the market consistently.

Question

The managers of mutual funds have tended to outperform the market consistently.​

Quizplus · Accepted Answer

Numerous studies have shown that the majority of mutual fund managers fail to outperform the market consistently over the long term. Some managers may have periods of outperformance, but it is difficult to sustain it year after year. Additionally, management fees and other expenses can erode the returns of the fund, making it harder for the manager to beat the market.

The Managers of Mutual Funds Have Tended to Outperform the Market