Actively managed mutual funds tend to underperform in comparison to the S&P 500 Index. Why is this?
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Actively managed mutual funds tend to underperform in comparison to the S&P 500 Index. Why is this? Using the Web or another source (e.g., mutual fund newsletter, magazine, or financial professional), identify three to five funds that have beat the market for the past year. Using the Web sites www.morningstar.com, www.smartmoney.com, or finance.yahoo.com, research the individual stocks or sectors of the economy that comprise the fund. Can you explain why these funds are beating the market? Is the S&P 500 Index always the appropriate method to measure performance? Why or why not?
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Actively managed mutual funds often underperform in comparison to the SP 500 Index for several reasons Higher Fees Actively managed funds typically ch...View the full answer
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