Average is above average. At least that is true when referring to mutual funds.
Mutual fund ads often say you should not accept just the average returns of
"index funds" which are designed to simply match the market. The ads say: "Buy
our fund and have a chance at doing better." But because Index funds have such
low fees, they outperform about three quarters of actively managed funds. If
index funds beat three quarters of the pack, then their so-called average
returns are above average.
- Larry Pike, CFA, Client Priority Financial
Advisors LLC
- www.clientpriority.com
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