Ehtiraf

The mutual fund industry is thriving, but it’s still relatively new. Of the 5,000 (and counting) mutual funds available today, only 426 have been around for ten years or more, and of these, only
92 have managed to outperform the S&P index. Over the past five years the Vanguard Index 500 portfolio has had a higher return than more than 72 percent of equity funds, which is to say that the Vanguard Index 500 fund has done better than 306 of the 426 equity funds run by a maager.
But what about all the managers touted as brilliant; what about their funds?
There are some geniuses out there, certainly—those ninety- two who have outperformed the S&P index among them. With the newer funds we just don’t know yet, because the funds haven’t been in existence long enough to determine a long-term (ten-year) track record. Remember, when you’re investing for growth, you hope to leave your money right where it is for at least ten years.
Another reason the S&P does so well is that it isn’t a managed fund—and no manager means no manager’s salary.