Saturday , 10 December 2016


57% of Mutual Funds Have UNDER-performed the S&P 500 So Far In 2015 – Here’s Why

While 36% of mutual funds, on average, have outperformed their benchmarks (after fees) over the past 10 years, the truth of the matter is that only 43% of mutual funds have outperformed the S&P 500 so far in 2015. In other words, 57% of funds are still underperforming the market this year.
Why? HERE’S why.
Related Articles from the munKNEE Vault:
1. Don’t Invest in Mutual Funds! Here’s Why

The amount of evidence stacking up that mutual funds do not provide value for their investors is just staggering. While there are certainly signs that the public’s tolerance of excessive fees and executive pay is falling, the likelihood of significant structural change in the finance industry is still remote. Given such a backdrop the probability remains that investors in funds will, on average, continue to under-perform their benchmarks. So what is an investor to do? Read More »

2. Majority of Funds Under-perform Broad Market Indices So Is Investing Success OR Just Luck?

An annualized average of 56% of all actively managed domestic equity funds, 59% of active U.S. large-cap equity funds, and 64% of active mid-cap equity funds underperformed broad-market indexes. [Index funds anyone? Let’s review.] Words: 895 Read More »

3. Index Funds are a MUST in Every Long-Term Investment Portfolio – Here’s Why

The average annual equity return for individual investors has been 60-65% less ( 6-7 percentage points less), over a twenty year period, than the performance of the indices that everyone assumes reflect investor returns! In spite of such a dramatic under-performance that fact is being ignored because it is not useful to academics or investment companies – but I would think it is of interest to YOU! Words: 729 Read More »

4. Don’t Be Passive! Active Portfolio Management Has Major Benefits

We understand the appeal of passive investing. It offers lower fees and simplicity and many investors are skeptical about the ability of active managers to consistently beat a benchmark…yet there’s also a lot of evidence supporting the benefits of an active approach. Today, we see many risks that are hard to avoid by hugging a benchmark—and opportunities that simply cannot be captured by going passive. While not every point is relevant to every investor, in every market, we can think of ten good reasons to stay active in equities today. Read More »