Study Finds Mutual Fund Managers Unable to Consistently Outperform Benchmarks
The study looked at how well mutual fund managers perform compared to their costs. They found that, on average, after costs, most active mutual funds do not perform well. However, some fund managers may be able to beat the benchmark. The researchers looked at whether these good performances continue over time. Surprisingly, they found that there is no consistent pattern of fund managers outperforming their benchmark over periods of one year or longer.