Mutual Funds Achieve Highest Hit Rate In A Decade

At the end of October,  Jack Bogle, founder of Vanguard and pioneer of the index-based investing declared that passive investing could eventually account for 90% of the global equity market as investors shun active managers completely. This target is not entirely unreasonable. As the flow of assets towards passive funds has accelerated during the past few years, passive funds have risen to 47% of the assets managed by the US fund industry with active mutual funds in particular getting hit by low cost index funds and ETFs.. According to analysis from Berstein published earlier this year, passive equity management is expected to…