Paying someone (a fund manager) a percentage of your investment every year to "pick the winning stocks" with your money is more often than not a money-loser.
Looking at mutual funds over a period of years showed that very few of them even out-performed the market.
Almost all of those that did out-perform the market actually still lost out when the fund manager's percentage was figured in.
Fidelity Magellan Fund managed by Peter Lynch is one of the few exceptions where the fund not only outperformed the market but still did so after the fees.
(But then that is why you have heard of Fidelity Magellan Fund and Peter Lynch.)
Furthermore, as everyone jumped on Fidelity Magellan Fund it became too big and moved the market when it moved — and not in a beneficial way for the fund investors.
tl;dr: a monkey throwing a dart (assuming he charges a fee below 1%) will outperform most of the Wallstreet fund managers. Put your money in an index fund, let the algorithm spread your money/risk out and wait a few decades.
Looking at mutual funds over a period of years showed that very few of them even out-performed the market.
Almost all of those that did out-perform the market actually still lost out when the fund manager's percentage was figured in.
Fidelity Magellan Fund managed by Peter Lynch is one of the few exceptions where the fund not only outperformed the market but still did so after the fees.
(But then that is why you have heard of Fidelity Magellan Fund and Peter Lynch.)
Furthermore, as everyone jumped on Fidelity Magellan Fund it became too big and moved the market when it moved — and not in a beneficial way for the fund investors.
tl;dr: a monkey throwing a dart (assuming he charges a fee below 1%) will outperform most of the Wallstreet fund managers. Put your money in an index fund, let the algorithm spread your money/risk out and wait a few decades.