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Index funds - the good and the bad

It has been known for decades that the majority of managed mutual funds underperform the S&P 500 index. Thus was the concept of the index fund fund developed. Instead of trying to outperform the S&P 500, a task that few fund managers seem able to do, why not just settle for equaling the performance of the S&P 500, thus guaranteeing that the investor in the index fund will do as well as the market?

Click here to read the rest of my index funds essay.

posted Wednesday, December 03, 2003