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I think you mean they rarely beat the market index their fund is compared against, which is true. But that is usually (long-run) mid to high single digit percen
by ryanworl 11y ago
I think you mean they rarely beat the market index their fund is compared against, which is true. But that is usually (long-run) mid to high single digit percentage growth nominally depending on where you look. Inflation eats some of that, obviously, but not anywhere close to all of it.
- smt88 11y agoI actually meant inflation. In the investing world, index funds are very useful, and they often beat inflation by a few percentage points. But that return is only significant when you have tons of money. As I pointed out in another comment, turning $100k into $200k (adjusted for inflation) would take 20 years, assuming index funds grow 7% every year and inflation is a constant 3%.