Factlet of the Day: Mutual Funds Suck

Jeff Sommer summarizes the results of actively managed mutual funds over the past five years:

If all of the managers of the 2,862 funds hadn’t bothered to try to pick stocks at all — if they had merely flipped coins — they would, as a group, probably have produced better numbers.

I am not an investment advisor, so do whatever you want to do. But if you’re smart, you’ll invest in a few low-fee index funds and then just leave them alone. That is the path of wisdom.