Funds Fail to Beat Index

The latest numbers are in, and Eric Lam of the National Post reports that two thirds of Canadian mutual funds failed to beat the index over the last quarter. This isn't very good, but the longer term numbers are even worse. Over the last 5 years, only around 5 percent of Canadian funds, and eight percent with foreign content were able to beat the index. Factor in that this has been a lost decade, with virtually no return from these equity indices, and it is no wonder investors are disheartened! The data tells us that the index has made you almost no money, and that almost all funds have been worse. You really should consider your alternatives.