I recently came across these sobering statistics from Lipper Research...
- The average mutual fund returns 2% less than the stock market in general
- 80% of mutual funds under-perform the market in any given year
- From 1984 to 1999, one of the largest bull runs in history, the majority of North American mutual funds failed to outperform the Wilshire 5000 index.
- Most mutual fundsd have Sharpe ratios (a measure of risk adjusted return) of less than 1.0