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Finance Professor Discusses ‘Are You Making Good Investment Choices?’

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Stock market investments, such as mutual funds, play an important role in the financial portfolios of millions of Americans. In today’s world of 401(k) retirement plans, health savings accounts and educational savings plans, many Americans strive for a diversified investment portfolio that will maximize the ups of financial markets and minimize the downturns. Mutual funds are among the most popular investment choices.

Ajay Bhootra, associate professor of finance, examined mutual fund performance in his 2015 study, “Mutual Fund Performance: Luck or Skill?” and says “the bulk of evidence points to a mediocre average performance for these funds.”

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