One Way to Beat the Markethttp://www.fool.com/investing/mutual-funds/2009/05/09/one-way-to-beat-the-market.aspx Selena Maranjian
May 9, 2009
Chances are, you've run across advice like the following many times:
It's all true, and I've even offered that same advice myself, many times. I have a nagging worry, though, when I offer it. I worry that people might look at these three options and decide to skip managed funds.
And that would be a mistake.
Funds can be powerful
Here -- check out the 10-year average returns for some well-known names in the S&P 500 (remembering that during this period, the S&P 500 itself averaged a 2.2% annual loss):
Data: Morningstar.com as of May 8, 2009.
Even Cisco Systems (Nasdaq: CSCO ) , which many of us are used to thinking of as an aggressive highflier, posted a 10-year average loss greater than the S&P 500's.
Meanwhile, check out the performance of these mutual funds: