West Loop Financial LLCWhy do investors keep buying actively managed funds? – West Loop Financial LLC https://www.westloopfinancial.com Evolutionize Site Wed, 19 Aug 2020 20:50:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 Why do investors keep buying actively managed funds? https://www.westloopfinancial.com/2014/06/09/why-do-investors-keep-buying-actively-managed-funds-2/ https://www.westloopfinancial.com/2014/06/09/why-do-investors-keep-buying-actively-managed-funds-2/#respond Mon, 09 Jun 2014 18:26:42 +0000 http://evolvemypractice.com/?p=1008 An overwhelming body of evidence shows that actively managed mutual funds underperform their appropriate risk-adjusted benchmarks. In addition, little to no evidence points to persistence of performance beyond the randomly expected, which means past performance isn’t prologue. That’s the reason for one of the great puzzles in finance: Why do investors continue with such great...

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]]> An overwhelming body of evidence shows that actively managed mutual funds underperform their appropriate risk-adjusted benchmarks. In addition, little to no evidence points to persistence of performance beyond the randomly expected, which means past performance isn’t prologue.

That’s the reason for one of the great puzzles in finance: Why do investors continue with such great persistence to buy actively managed funds that underperform their benchmarks?

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