An Assessment of the Performance of Mutual Fund Management: 1969–1975

Abstract

Numerous studies have already examined the investment performance of mutual fund management with data from the 1950s and 1960s. Although the previous studies differed in the time period and evaluation method, they generally agreed that mutual funds, on the average, had failed to outperform the market over time. Thus they rendered a strong support to the efficient market hypothesis. Yet there is a need for an investigation of the data of the past several years. This study evaluates the quarterly investment performance of mutual funds in the period 1969–1975, using the weighted index benchmark portfolio approach.