It wasn't a good year for mutual funds, as 85 percent of the large-cap core mutual funds have under-performed the S&P 500 year to date, the highest percentage since 1997.
Three factors contributed to funds not beating the market in 2014, says a new report on mutual funds from Goldman Sachs. This includes non-benchmark holdings, sector selection and low dispersion.
While large-cap S&P 500 is up 14 percent year to date, outperforming small-cap and non-US holdings, it was these core benchmark holdings that bedeviled some fund managers, the report noted. Funds were underweight large caps by 11 percent. Nonetheless, watch for large-cap and Setup a free account to get access to this article (no credit card required).Login required to continue reading.
