Each mutual fund, and other items you have the choice to invest in are all topic related. Such as mid-cap growth, for instance. So that's the only area they concentrate in. If the mid-cap growth stocks go up, it goes up, if they go down, it goes down, ad nasium. Most of them, all they try to do is whatever the market is dishing out at the moment, in anticipation of the stock market going up as a long term trend.
Edit: Sure they try to beat the market. But beating the market may mean if it goes down 20%, they only lost 18% instead.
It takes active management to actually make any money. They are making money off of your money, whether you make any money or not. So, that only leaves you in control.
Edited by CatBrat (07/20/10 10:26 AM)