SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Data Dimensions

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: B. Pasternak who wrote (1780)6/18/1997 3:53:00 AM
From: craig crawford   of 4571
 
<< Yet approximately 85% of the funds do not beat the S&P500, >>

That's partly not their fault. Fund managers aren't allowed to purchase more than 5% of a single company for their fund. I'm sure plenty of fund managers have a few stocks that they know will do well but they are forced to dilute their holdings.
Look at it this way. Every fund would have beaten the S&P 500 last year if they could have just bought MSFT or INTC, but they were forced to diversify.
There are other restrictions as well, but I don't want to get into them.
Any individual investor should be able to beat a mutual fund.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext