Are you outperforming the worlds top Fund Managers?


I know that Mondays aren’t the most exciting day for most people so rather than ask you to read a lengthy post, I thought I’d share this interesting and insightful infographic with you today instead.

The infographic takes a look at how the world’s top managed funds have performed over the past 10 years in relation to the stock market itself and I found the stats presented to be quite astonishing. If you were offered the chance, how many of you would like to place your hard-earned cash in the hands of one of the world’s top traders and hedge funds? On impulse you might think ‘Where do I sign?’. In reality though, this infographic shows that it could perhaps be one of the worst things you could do.

The infographic shows that for the past 10 years many of the worlds managed funds have under-performed the market by some margin. Even investing legends like Warren Buffet and Bill Withers have had periods of under-performance. It also shows that had you invested $1000 of your savings into an index fund linked to the S&P 500 back in 2003, it would actually be worth $440 more now that if it had been invested into some of the worlds largest hedge funds. I’m guessing these figures are based on your average hedge fund because granted, some will do better than others.

What about you? 

Do you manage your own portfolio? If you’ve been investing for a long time, how have your investments fared over the past 10 years? Have they outperformed managed funds, index funds or even the market?

When you think of the time that some people spend actively managing their own portfolio, the information presented below does give food for thought. Are you able to look back over your returns in recent years and make a comparison with what you would have returned investing in an index fund instead? I know some people enjoy the thrill of the trade but others might be just as happy to sit back and watch their money grow, rather than have to make their own investment decisions on a regular basis. Is your cash currently invested in a managed fund with high fees? Again, is it time to take a good look at those returns and compare them with the performance of index funds with lower fees? One final question.

If Warren Buffet or Bill Miller called you up and offered to manage your portfolio, would you turn them down?

Anyway I hope you enjoy this infographic created by Business Profiles and as always we’d love to hear your thoughts!


12 Responses to Are you outperforming the worlds top Fund Managers?

  1. Very interesting. Now I don’t feel so bad about my “lazy” investment strategy of total stock market index funds.

  2. Daisy Coleman says:

    Wow, these stats are interesting, very insightful. Thanks for sharing.

  3. Very interesting, Adam! I think maybe if Buffett offered to manage my funds I’d take him up on it, but likely not anyone else. I like Buffett – he’s a smart kind of frugal. 🙂

  4. Yeah I’m a fairly lazy investor…which looks like is just fine! I like the more passive investments, like index funds, mainly because I don’t want to spend the time researching investments or whether certain funds are better or worse than other funds.

  5. Great infographic. I think the trend towards passive investing (investing in index funds) is starting to ramp up. Investors are realizing that managers can’t beat the market consistently. I even noticed in USA Today that they track a passive portfolio now versus an active one.

  6. Great infographic, and so applicable. I have all my investments in passive Vanguard ETFs. Over time, active management is highly likely to underperform by the management fees. It’s so important that people see and understand this!

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