>Very few active fund managers can consistently beat their indexes. Funds profit from managing more money. The more money you manage, the harder it is to find

>Very few active fund managers can consistently beat their indexes. Funds profit from managing more money. The more money you manage, the harder it is to find plays that use a significant amount of it. So it makes perfect sense that funds would increase in size until they perform at a rate similar to indexes. >Why do you believe you would be better over a long period of time? The fully loaded cost of even a junior analyst would be in the hundreds of thousands a year. Independent day traders can focus on strategies that leverage such a tiny amount of capital and result in such a tiny return that it's not profitable for a fund to be looking at. Keeping in mind that "too small for a fund to worry about" can still be "shitloads of money" for 99% of people.