Mutual Fund Analysis

So on the recent news that mutual fund assets have reached 2.75 trillion dollars in the United States I thought I’d take a bit of a look at some mutual fund analysis.  Are mutual funds truly any better than taking your risks in the stock market?  Sure, index funds are an obvious way to try to match the markets, but are managed funds any better than just going on your own?

I’m pretty sure that I prefer the funds that are based on rules, rather than on the whim of some manager.  I never really feel like the manager’s interests are aligned with mine.

I hate the idea of being the dumb money in the market, but in the current climate I’m not sure there’s any other kind.  You’re either a parasite, or the victim.  Those seem to be your only two options.  What do you think?  Are managed funds a worthwhile idea, or are they just another way for the finance industry to trick me into giving them my money for doing very little?

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