Mutual fund managers have tough time beating market


Whether it’s the best of times or the worst for

stocks, mutual fund managers still find that beating

the market is a tough slog.

The stock market got

- FWBP Digital Partners -

off to a roaring start this

year, and S&P 500 index

funds enjoyed their best

quarter in nearly a decade.

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But the majority of fund

managers lagged their

respective indexes,

according to Jefferies.

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Many were stung by

owning less in utility and

real-estate stocks than the

indexes, and those areas

of the market shot higher

as worries about rising

interest rates receded.

It’s not a new phenomenon. Over the last 20

years, the majority of fund managers beat their

index in just four years.

Some areas have seen

more success than others.

The majority of small-cap

growth fund managers

have beaten their indexes

in each of the last two

quarters, for example.

Researchers have also

found that funds with low

expenses tend to be

better long-term performers

because they have a

lower hurdle to jump to

match the returns of index

funds, which generally

have low fees.