Making Cents: Much Ado for Minimal Results

Think money managers can beat the index funds? Not many did last year. Of the 1.751 actively managed general U.S. stock funds tracked by Lipper Analytical, only 263 funds--or 15%--met or exceeded 1990’s 36.8% gain in the S&P; 500 stock index. In fairness to the managers, that was their poorest showing against the index in the last 16 years. In their best year--1981--75% of the funds beat the S&P; index.