Some Managed Funds Are Beating The Index

Some managed funds are winners LOS ANGELES - A guard, in suit and tie, asks me to pop the trunk of my rental car. [...] I can enter the underground parking lot of a tall building in downtown LA. [...] most people know it as the American Funds group. Managed funds that beat their comparative index. 1 Does the fund have expenses lower than 75 percent of other funds? 1 Do the fund managers have significant ownership of fund shares? Dozens of studies have shown that managed funds can beat their index only about 30 percent of the time. Yes, it just so happens that low expenses and high manager ownership characterize the American Funds group. If American Funds aren't offered, it is likely that the broker has focused on his own welfare and pressures from his firm. Most of the time, over most time periods, most actively managed funds fail to beat a simple, low-cost index fund.