AFI 0.68% $7.29 australian foundation investment company limited

why do funds underperform the index

  1. 298 Posts.
    I read an interesting arguement based on the NTA

    it goes something like this

    if the the NTA is less more than the shareprice the fund will probably outperform the index

    if less ie the NTA is below the market price for the shares then the share price is likely to underperform the index

    Not sure whether this is based on the NTA after tax or before tax

    Anyone have any views on this subject?
 
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