Active management rarely beats the market from "summary" of Common Sense on Mutual Funds by John C. Bogle
The idea that active management rarely beats the market is a critical concept for investors to understand. Many investors are drawn to actively managed funds by the promise of outperforming the market and achieving higher returns. However, the reality is that the majority of actively managed funds fail to beat their respective benchmarks over the long term. This phenomenon can be attributed to a number of factors. One key reason is the higher fees associated with actively managed funds. These fees can eat into investors' returns and make it even more challenging for fund managers to outperform the market consistently. Additionally, the constant buying and selling of securities by active managers can re...
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