Managed Funds are withdrawn in Huge Quantities by the Investors
Recent figures reflect that majority of investors are pulling out managed funds in rapid successions this even includes the big mutual funds which have delivered above market returns. As per Standard & Poor's ninth annual report on managed funds vs. index funds, almost 58% of managed stock funds in US were unable to reach the market's board measure.
According to Morningstar in past 4 years, an amount of $323 billion from managed stock funds, have been pulled out by the investors which totals to 10% of the assets kept by those funds.
Where as the Index funds which charge less than managed funds, trail the managed funds. In past 4 years, Investors have just invested around $108 billion into US stock Index funds.
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