NEW YORK ( TheStreet) -- Do investors buy the wrong funds? Plenty of academic researchers think so. The researchers say that many investors pick poor-performing actively managed funds. Instead of trying to beat the benchmarks with actively managed funds, most investors would do better by sticking with index funds, the academics argue.But a new study by Morningstar suggests that investors aren't so dumb after all. According to the latest data, typical investors have achieved competitive results. "Investors have done a good job of picking active funds," says John Rekenthaler, Morningstar's vice president of research.
'Dumb' Investors Turn Out To Be Shrewd
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