![]() ![]() Most of them cannot do it because of the fees they charge their clients. Instead, their idea is to buy the major index that they are trying to outperform and by doing manipulations on their assets, try to outperform the market. Most mutual funds have to be at least 90% invested so that concepts like stops and position sizing don’t mean much to them. Thus, they compare themselves to some index such as the S&P 500 and believe they have done well by outperforming that index. ![]() And the portfolio mangers who trade those mutual funds stress relative performance rather than absolute returns. ![]() Today there are still more mutual funds trading the market than there are stocks on the major exchanges. Third, professionals either don’t know this, or don’t want to know this, because they have other rules to justify their performance. Second, if you have too much money, then you probably cannot achieve these sorts of goals because your activity moves markets. ![]()
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