Advantages of index equity funds. The simplest way to achieve this objective is obviously to hold all the stocks in the index. Not surprising given the performance of the average managed fund. Includes reinvestment of dividends and capital gains. Multiyear periods are average annual returns.
Mutual funds are U.S. diversified equity funds, after expenses, but before sales charges.
Institutional fund returns are before expenses. Obviously a number of mutual funds did outperform the index, however, other studies have shown that there isn't a systematic and predictable formula for choosing successful mutual funds. Q Look at the notes at the bottom of the table. These fees are much smaller for index funds. Thus, taxes are deferred until the investor cashes out of the mutual fund.