Fund Landscape 2024 Study on Mutual Fund Performance

This document is a study that analyzes the performance of US-domiciled mutual funds and exchange-traded funds (ETFs) through 2023. It aims to assess how fund managers perform relative to their benchmarks. The study reveals that a majority of fund managers in the sample did not achieve benchmark-beating returns after costs. The analysis includes data on the number of funds, assets under management, and performance metrics over various time periods. It highlights the significant number of funds that fail to survive and outperform their benchmarks, indicating that many investors may not achieve their desired investment outcomes. The research also discusses the impact of costs on fund performance, noting that higher expense ratios correlate with lower rates of outperformance. Additionally, it examines the persistence of fund performance, showing that past top-quartile performance does not guarantee future success. Overall, the study underscores the importance of market prices in investment decisions.