Conclusion of the study on funds and their indexes for 15 years (IV)

Hi friends,

Thank you for reading so far into my 4 part series. The objective of this part is to give you the key takeaways from the paper. This is especially important for those of you that cannot look at the data presented in the previous posts and just want the main point. Here I go:

1. Majority of funds would not perform as well as the market index as the time horizon increases.
2. Bigger fund sizes would perform better than smaller fund sizes. (But still less worse than their indexes)
3. Growth stocks generally perform better than value stocks.
4. A higher proportion of international funds perform better than their respective indexes, especially prevalent in small cap markets. This would mean that if you’re looking to invest actively, you would do better if you aim at the international small-cap market (22% chance of out-performing the market in a 15 years time horizon)

With that, I conclude this min-series. Next I will be writing about the performance of actively-managed funds in a bear market (As there has been counterarguments that active-management would fare better compared to their indexes in the bear market.)

I will also be talking about some basis of investing; what are bonds, stocks, ETFs, funds etc. So that we can be on the same page. Also, I will talk about the ideals that drives my financial journey.