If this was said of companies people could say "Don't buy an index. That's just an average of good companies and bad companies. Instead just buy good companie

If this was said of companies people could say "Don't buy an index. That's just an average of good companies and bad companies. Instead just buy good companies they will consistently outperform the index." The problem is in the details. Identifying good companies is very very hard. Identifying good funds is much much harder. By the time there is a large amount of evidence that a fund is a good fund it is either A. closed to new funds or B. Drowning in so much cash that there is no hope of delivering it's historical returns.(its much easier to return 12% on 10 million than 10 billion)