[NRx]

The Executive Summary for those who don't want to read the article: Actively managed portfolios and mutual funds almost never beat the index over the long term. You are much better off sticking with a diversified portfolio consisting of a handful of low cost index funds and reinvesting the dividends.

[lordpumblechook]

Efficient market hypothesis once again proven true...

[Alberta's Child]

This is especially true when you take into account the management fees and tax inefficiencies of many actively managed funds. The more buying and selling that is done within a mutual fund, the more taxes you'll pay on the short-term and long-term capital gains in that fund.

Index funds work well for a long-term "buy & hold" strategy. I use a mix of index funds (for long-term investing) and managed funds (where I sell occasionally for short-term gains).

[aMorePerfectUnion]

Nothing beats a market index that has:

... no cost
... no risk management
... no concern for loss of capital

... And propelled higher by the Plunge Protection Team at the Federal Reserve that has prevented a meltdown since quantitative easing began by buying index derivatives.

How could anything do better than a no cost, manipulated index?? Seems impossible.

Please update this evaluation after the next collapse and we can compare all the alternative strategies over a complete market cycle.

[expat_panama]

[minnesota_bound]

I bought Apple stock for $86 last May 2014 and so far it has gone up to a high of 35%

Pick 1 stock and you can do very very well : )