A Financial Mystery: Investors Paying Tens of Billions of Dollars to Underperforming Mutual Funds -- When Index Funds are Cheaper and Perform Better
Earlier this year, finance researcher Stewart Brown published a paper that featured a startling introduction:
There is a large financial anomaly hiding in plain sight. In 2021, investors paid almost $90 billion in total fees on about $14 trillion of actively managed mutual funds to an industry flogging a product demonstrably inferior to index funds. [Fellow researcher] Gruber identified this puzzle in 1996, and we are no closer now than we were then to understanding this mystery.
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Source Fool.com
