I am not sure which article Don referred to, but that kind of statistics can be found on many places. Examples are: David Dreman`s book on `Contrarian Investment Strategies`; Adrew S. Clark (Vanguard Group)`s book `Wealth of Experience` and Mark J. Heinzl`s book `Stop Buying Mutual Funds`.
Basically what these books are saying is that since mutual funds form such a large part of the stock market trading, they are likely to perform similar as the stockmarket. But on top of that, investors pay between 1.5 to 3% management fees (e.g. MER) and consequently most funds are likely to underperform the market.
That is why ETFs and index funds are becoming more popular because, in principal they contain the same stocks as one or more market indexes and charge only minuscule management fees, so they would do roughly as well as the markets themselve.
Hope this helps.
Basically what these books are saying is that since mutual funds form such a large part of the stock market trading, they are likely to perform similar as the stockmarket. But on top of that, investors pay between 1.5 to 3% management fees (e.g. MER) and consequently most funds are likely to underperform the market.
That is why ETFs and index funds are becoming more popular because, in principal they contain the same stocks as one or more market indexes and charge only minuscule management fees, so they would do roughly as well as the markets themselve.
Hope this helps.