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Findings on 2012 mutual fund performance vs market

  • Article by: The Associated Press
  • Associated Press
  • March 28, 2013 - 3:35 PM

Managers of stock mutual funds had a tough time beating the market in 2012, with two-thirds failing to achieve that goal. That's according to S&P Dow Jones Indices, which this week released its 11th annual managed fund vs. stock index performance scorecard.

U.S. stock funds that are actively managed, rather than track an index, posted an average return of nearly 14.7 percent last year. The return for the broader market was about 16.2 percent, as measured by the Standard & Poor's Composite 1500, an index that includes large-, mid- and small-cap stocks.

Over 10 years, the average percentage of funds underperforming in a given year was 57. Below are the percentages of funds that failed to beat the S&P 1500 in each of those years:

2002 — 59%

2003 — 48%

2004 — 51%

2005 — 44%

2006 — 68%

2007 — 49%

2008 — 64%

2009 — 42%

2010 — 58%

2011 — 84%

2012 — 66%

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