I bought several low cost mutual funds of various types 30 years ago. All lagged the S&P almost from Day One. Their underperformance has been consistent in good markets and bad.
Around 1995 I learned one of the industry's dirty secrets when my worst performing fund was merged into a more successful one. Poof! The loser's bad record -- and it wasn't awful -- vanished. I have another mediocre fund that changed its name twice in the past decade.
As a result, for 30 years Index funds have been my core holding. and I run my few individual stocks almost like an index fund, with little trading and avoiding fads. Results have been excellent.
I'm convinced that the public does't realize how poorly most funds perform.
______________________________________________________________
Because the Good Life is Just a Pump or Two Away
