Yes, you can beat the market. But anyone cannot beat the market. This is a problem for retail investors. Studies such as this one [1] have shown that the past

Yes, you can beat the market. But anyone cannot beat the market. This is a problem for retail investors. Studies such as this one [1] have shown that the past performance of an actively managed fund does not predict its future returns. In other words, while there are certainly actively managed funds that beat the market in some years, a retail investor picking a mutual fund based on past performance is likely to be disappointed. So how do you pick the fund that will give you high returns? Turns out this is exactly the same problem with individual stock picking, but instead of trying to pick winning stocks on the stock market, you are trying to pick winning managers in the mutual fund business. And your success in doing that ultimately comes down to chance. [1] https://insights.som.yale.edu/insights/does-mutual-fund-s-past-performance-predict-its-future https://insights.som.yale.edu/insights/does-mutual-fund-s-pa...