Most Mutual Funds Still Fail to Beat the Market Over Time As Index Funds Gain Traction, 100 Years Since First Fund
• Most mutual fund managers fail to consistently pick stocks that outperform the market over 10 years
• Making a few large, high-conviction bets on big winners is key to boosting returns more than stock-picking skill
• Index funds often outperform actively managed funds over time and charge lower fees
• Despite recent volatility, indicators like the S&P 500 breaking 5,000 and January returns point to more gains in 2024
• 2023 marks the 100-year anniversary of the first US mutual fund, an innovation that has democratized investing for millions