{"id":7765,"date":"2024-05-02T11:10:02","date_gmt":"2024-05-02T15:10:02","guid":{"rendered":"https:\/\/gpsmedici.ca\/2024\/05\/02\/fonds-communs-pourquoi-la-majorite-ne-bat-pas-le-marche\/"},"modified":"2024-09-17T15:17:08","modified_gmt":"2024-09-17T19:17:08","slug":"mutual-funds-why-the-majority-fail-to-beat-the-market","status":"publish","type":"post","link":"https:\/\/gpsmedici.ca\/en\/2024\/05\/02\/mutual-funds-why-the-majority-fail-to-beat-the-market\/","title":{"rendered":"Mutual Funds: Why the Majority Fail to Beat the Market"},"content":{"rendered":"\n<p>Over three-quarters of Canadian mutual fund managers failed to outperform their benchmark index in 2023, despite it being a bullish year for the stock market. This underperformance is even more widespread over the long term: 9 out of 10 Canadian managers don&#8217;t surpass their benchmark over five years or more.<\/p>\n<p>How can we account for this underperformance? Yannick Cl\u00e9rouin, portfolio manager and partner at Medici, and Tania Strebel, associate portfolio manager, delve into an annual study in <a href=\"https:\/\/youtu.be\/eu2eHgE1ibg\">this video clip<\/a>.<\/p>\n<p>The analysis, conducted by Standard &amp; Poor&#8217;s, compares the performance of Canadian mutual fund managers to their benchmark index over short, medium, and long-term periods.<\/p>\n<p>The primary goal of the study is to determine whether it is better to invest passively or actively.<\/p>\n<p>Yannick and Tania discuss the factors, cited in the study, that help explain why mutual funds are mostly lagging their benchmarks:<\/p>\n<ul>\n<li><strong>Concentration of gains in a few stocks<\/strong>: A small handful of stocks, including Shopify in Canada, contributed significantly to the benchmark&#8217;s performance in 2023, penalizing funds that did not hold them.<\/li>\n<li><strong>Survivorship bias<\/strong>: The study includes all existing funds over the periods studied, even those that disappeared along the way. This approach provides a more accurate picture of long-term performance, as the mutual fund industry regularly eliminates underperforming funds.<\/li>\n<li><strong>High management fees<\/strong>: High management fees undermine mutual fund performance after fees.<\/li>\n<li><strong>Closet indexing<\/strong>: Many mutual fund managers try to closely follow the benchmark without deviating too much, which greatly limits their potential for outperformance.<\/li>\n<\/ul>\n<p>Watch <a href=\"https:\/\/youtu.be\/eu2eHgE1ibg\">this video<\/a> to learn more about the study and for our managers&#8217; tips for investors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over three-quarters of Canadian mutual fund managers failed to outperform their benchmark index in 2023, despite it being a bullish year for the stock market. This underperformance is even more widespread over the long term: 9 out of 10 Canadian managers don&#8217;t surpass their benchmark over five years or more. How can we account for [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":7792,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[297],"tags":[339,306,340,341],"class_list":["post-7765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-videos","tag-fonds-communs-en","tag-investir-en","tag-investment","tag-mutual-funds"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Mutual Funds: Why the Majority Fail to Beat the Market - Medici<\/title>\n<meta name=\"description\" content=\"Over three-quarters of Canadian mutual fund managers failed to outperform their benchmark index in 2023. Why?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gpsmedici.ca\/en\/2024\/05\/02\/mutual-funds-why-the-majority-fail-to-beat-the-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mutual Funds: Why the Majority Fail to Beat the Market - Medici\" \/>\n<meta property=\"og:description\" content=\"Over three-quarters of Canadian mutual fund managers failed to outperform their benchmark index in 2023. 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