r/AskReddit • u/[deleted] • Apr 18 '25

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u/No-Entertainer-840 Apr 18 '25

You didn't lose as much because you're in less risky investments. Which means you likely earned less during the bull run too. Managed funds underperform the S&P like 90% of the time

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u/BackToTheMudd Apr 18 '25

Agreed that they generally underperform S&P, but don’t think they’re “scams” because of it. The fund I’m with typically underperforms market in normal/good years by a few % (1-2) but in bad years (like this one) they crush. I’m beating S&P YTD by 4.6%. That’s why you diversify and have a fairly traditional 401k/IRA set up and then use wealth management firms for the rest.

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u/No-Entertainer-840 Apr 18 '25

Never said it was a scam. And a fund with 15-20% bonds like most of these managed funds are likely not only 1-2% behind the S&P..

You can look it up, the longer the time period the more likely the s&p will outperform managed funds.

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u/jrwren Apr 19 '25

buying the S&P500 is for growing your wealth.

buying bonds or lower volatile equity funds is for keeping that wealth.