Mutual funds underperform in an environment where arbitrage exists and prices are at least close to efficient.
Indices don’t select the “best performing” companies, they usually select the “biggest” companies. Here the analogy to the charity world breaks.
Mutual funds underperform in an environment where arbitrage exists and prices are at least close to efficient.
Indices don’t select the “best performing” companies, they usually select the “biggest” companies. Here the analogy to the charity world breaks.