Bill Miller is a fund manager who has set a new pace in the financial markets. His firm has been on a winning streak for a record time of 14 years. In recent years, the markets were bearish yet Miller’s firm was able to not only surpass the S&P 500 mark but consistently have positive returns. He has a consistent index-beating record that is unmatched. The United States fund market is the largest in the world. The aggregate figures are an abstract reflection of the consistent growth of mutual funds investment. Majority of the people that own mutual fund investments in the 21st century comprise of nearly half of the households in the United States. This is a great increase from the 1980s where only 6% of the population had mutual-fund assets.
Investment performance is measured based on its efficiency, returns and risk involved. Mutual funds enable the investor to diversify their portfolio without necessarily injecting a huge sum of money into the fund. This makes this investment efficient. Over the years, mutual funds have had good returns. The industry provides the investor a place where he can safeguard his investment from harsh market forces. As such, the investor is assured of making some gains from his investment. The fact that an investor does not have to actively contribute in monitoring the fund to protect his investment enables them to have peace of mind. This is not the case when you invest in a business since the risks are high and you stand to lose your investment all together.
As long as the fund managers are able to ensure that they are always above the S & P 500 margin, they can assure their investors of good returns.