Outperforming the market is difficult and most actively managed funds are not able to do so. If the average lay person is not skilled at picking stocks then what evidence shows they can be skilled at picking a fund manager? A lay person would likely do best by using a market ETF. I am a few years late to this post.
One piece of evidence for this is the SPIVA US Scorecard for 2024 which showed that over the 15 years to December 2024 "there were no categories in which a majority of active managers outperformed" the market. Additionally... (read more)
Outperforming the market is difficult and most actively managed funds are not able to do so. If the average lay person is not skilled at picking stocks then what evidence shows they can be skilled at picking a fund manager? A lay person would likely do best by using a market ETF. I am a few years late to this post.
One piece of evidence for this is the SPIVA US Scorecard for 2024 which showed that over the 15 years to December 2024 "there were no categories in which a majority of active managers outperformed" the market. Additionally... (read more)