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Will mutual funds be able to outperform the benchmarks in 2024 if stocks keep rising?

#ActivelyManagedFunds #USMutualFunds #LargeCapStocks #InvestmentPerformance #RussellBenchmark #BofAResearch #FinancialMarkets #InvestmentInsights

In a recent study by BofA Global Research, it was revealed that a significant majority of actively managed U.S mutual funds which primarily focus on large-cap stocks struggled to outperform their Russell benchmarks during the past year. This underperformance, despite the overall market gains, showcases a concerning trend in the sector and points towards a need for reassessment of strategy by these funds.

The implication of these findings cannot be understated as it brings into contrast the efficacy of active fund management particularly in the space of large-cap stocks. In light of these results, investors may need to rethink their investment strategies and potentially explore alternatives. While this study does not definitively conclude that active management is less effective, it does set a precedent for questioning traditional investment approaches.

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