On Index Funds by Stephen Littauer
ARTICLE SYNOPSIS ...On Index Funds by Stephen Littauer
Do mutual funds underperform the market? Statistics would indicate so. Index funds may better suit investor needs.
Most mutual funds underperform the market. Over the past 10 years, CDA/Wiesenberger Mutual
Funds Update reports that 356 mutual funds with an investment objective of long-term growth had an
average annual return of 15.8%. The equivalent annual return for the Standard & Poor's 500 index during
the same period was 19.1%. Was the difference of 3.3% a fluke or statistical error? Let's look at figures
from additional sources.
Morningstar Mutual Fun...