

New mutual funds better than older ones? - dak1
http://money.cnn.com/2014/03/02/investing/young-old-mutual-funds/index.html?hpt=hp_t2

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lutusp
Quote: '"The fact that the index beat the average actively managed funds
doesn't mean that it beat the good actively managed funds," said Ellison.'

Yes, true, but the problem is choosing the "good" managed fund, and keeping in
mind that (statistically speaking) a good managed fund is only good for a
short time and is replaced by another good managed fund.

My point? The statistics of random market fluctuations assures that at any
particular time, some managed fund will look good for no real reason, only
because of random fluctuations, high entropy. And in the long term, an index
fund is a better investment.

Investment counselors and brokers don't want you to find this out. Their
business depends on the confusion of entropy and wisdom.

