Sep 25 2016, 09:36 PM
However, in the following article, the author warns:
QUOTE
Investors are flocking to S&P 500 index funds as if they were the only game in town. Headlines question whether actively managed funds can survive. As is so often the case, the crowd appears to be doing the wrong thing. “This is the wrong time to load up on an S&P index fund,” Opsal warns. “Don’t chase performance.”
http://www.kiplinger.com/article/investing...-opportuni.htmlIf what the author says is correct, then we can explain why US index funds outperform majority of the actively managed funds with the diagram attached.
Now, the question:
Why do many Malaysia mutual funds beat their benchmarks?
That is probably because not many investors buy Malaysian ETFs, thereby not able to push up the prices of the component stocks. (see post #13)
Of course, ignorant Westerners would think that internet access in emerging markets is very limited, and that information is disseminated much more slowly. As a result, Efficient Market Hypothesis doesn't hold true here as in developed markets
This post has been edited by river.sand: Sep 25 2016, 09:38 PM
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