The Myth of the Successful Money Manager

The Myth of the Successful Money Manager

The Myth of the Successful Money Manager

It seems logical to conclude that having an experienced fund manager handle your money would be the best choice for a good return on investment.

However, much data shows that especially after fees and other deductions, that these types of funds often fail to beat the market. This is one of the myths that Tony Robbins, the famed life coach, has identified in his latest book called “Money Master the Game” and has helped shed light on.

From 1984 to 1998, a 15 year period, only eight out of 200 fund managers beat the Vanguard 500 Index. While you will hear stories of managed funds crushing the market in the course of one year or maybe two, over time it becomes much more unlikely. Over 40 years, only 12% of managed funds tend to beat the benchmark indices.

Original graphic from: Business Profiles



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