Actively managed mutual funds usually fail to outperform index funds, and this fact provides evidence in favor of the efficient markets hypothesis.

Question

Quizplus · Accepted Answer

Most actively managed mutual funds do not consistently outperform index funds over the long term, which supports the efficient markets hypothesis by suggesting that it is difficult to achieve higher returns through stock selection and market timing due to markets being efficient in reflecting all available information.

Actively Managed Mutual Funds Usually Fail to Outperform Index Funds