New mutual funds better than older ones?

Quote: '"The fact that the index beat the average actively managed funds doesn't mean that it beat the good actively managed funds," said Ellison.'

Yes, true, but the problem is choosing the "good" managed fund, and keeping in mind that (statistically speaking) a good managed fund is only good for a short time and is replaced by another good managed fund.

My point? The statistics of random market fluctuations assures that at any particular time, some managed fund will look good for no real reason, only because of random fluctuations, high entropy. And in the long term, an index fund is a better investment.

Investment counselors and brokers don't want you to find this out. Their business depends on the confusion of entropy and wisdom.