Over many years, the majority of managed mutual funds outperform the Standard & Poor's stock index.

Question

Quizplus · Accepted Answer

Numerous studies have shown that over the long-term, the majority of managed mutual funds underperform the S&P 500 index. This is largely due to the higher fees and expenses charged by actively managed funds compared to passively managed index funds. While there may be some actively managed funds that outperform the index in any given year, it is difficult for fund managers to consistently beat the market over the long-term.

Over Many Years, the Majority of Managed Mutual Funds Outperform