The picture that emerged once S&P did that was sobering, to say the least.
Over the last 15 years, 92.2% of large-cap funds lagged a simple S&P 500 index fund. The percentages of mid-cap and small-cap funds lagging their benchmarks were even higher: 95.4% and 93.2%, respectively.
In other words, the odds you’ll do better than an index fund are close to 1 out of 20 when picking an actively-managed domestic equity mutual fund.
So if you haven’t already double check your current investments and jot down the fees associated with them and the returns you’re getting.
Some may argue that these fees are relatively small, perhaps 1% or 2%. Is that really going to affect you when it comes to retirement?
Elle Martinez helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second..