The Death of Active Management

The latest SPIVA report card was just released showing a whopping 97% of mutual funds underperforming their own benchmarks.
​
There is no legitimate excuse to be paying Wall St. mutual fund stock pickers anymore. We have enough data (20 years) to determine for ourselves that the exorbitant fees that they charge are just a transfer of wealth from families to the banks.
​
If you are working with a financial advisor that is "picking the best mutual funds," be sure to ask them why they picked the funds you own. There is a 97% chance that you would have been better off buying the S&P 500.

Here at Axis Capital we invest in broad based index funds with low fees. The resulting effect is that you keep more of your money invested instead of paying it out in fees. This has a tremendous impact on your wealth when compounded over a 20-30 year period.

SPIVA U.S. Scorecard Mid-Year 2023