I have found that most of the active managed mutual funds cannot beat index consistently. Is it worthwhile to still invest in mutual funds? What if my mutual fund is not actively managed or my fund manager cannot navigate the market better than a random collection of indexed stocks? How to choose among so many mutual funds and fund managers available? Form where can I receive information about the best mutual funds and fund managers that beat market index regularly and are suitable for me? Please suggest. Thanks a lot!

You should start by looking at the Expense Ratio and Tax Cost Ratio of the fund, which is where most of the earnings are eroded from. Morninstar.com, provides this information for free, and a fund comparison for each major financial institution.

Indexes are not random. An index fund or index tracker is a collective investment scheme (usually a mutual fund or exchange-traded fund) that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions.

Personally I believe in Indexing. Managed funds don't work as well as unmanaged, because of the human factor/emotion. Even if they do about the same, you will still be ahead with indexes, since they have a relatively low cost.

You have to make the decision that is right for you, but I would suggest EFTs.
Take a look at Vanguard, Dimensional funds, and T. Rowe Price.

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Whew! So many questions! Dear friend, take some breath. Well, there multiple websites available online that gives information to its subscribers about the very best mutual funds and the savvy stock pickers who run them.
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quote:

Originally posted by Kate_Lawler:
I have found that most of the active managed mutual funds cannot beat index consistently. Is it worthwhile to still invest in mutual funds? What if my mutual fund is not actively managed or my fund manager cannot navigate the market better than a random collection of indexed stocks? How to choose among so many mutual funds and fund managers available? Form where can I receive information about the best mutual funds and fund managers that beat market index regularly and are suitable for me? Please suggest. Thanks a lot!

Decades of research has shown that in the long term, actively managed mutual funds have returned less than the market after expenses and fees. This tells you that index mutual funds are the way to go.

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