A failure rate of 50% is pretty high in any field.
What if 50% of a manufactured product failed a basic inspection?
What would you do if you wanted to open a restaurant, but found out that 50% of the same type of restaurant failed?
What if your doctor prescribed medication, but told you it doesn’t work 50% of the time?
You know those smart, glib, well-dressed, highly confident, fund managers who go on CNBC and other networks?
They seem to have the answer for any question thrown at them.
They even predict what will happen in the future.
Here’s some shocking news.
Over a 15-year period as of December 31, 2018, 49% of actively managed, US based mutual funds went out of business.
Over a 20-year period, that percentage increases to 58%.
Many of these “masters of the universe”, with all their education and much-touted predictive ability, can’t stay in business over the long-term.
That’s why you shouldn’t invest with them. Buy comparable low-management fee index funds instead.
They’ll be around when you need them.