@pepperbites Absolutely. One more core concept that many believe in MF is mean reversion. Basically overperforming funds start to underperform eventually. And underperformers start to overperform.
The reason many believe is overperforming MF start to get lots of funds from investors since they became popular, and it becomes tough when the money gets too big.
But of course, it's a theory. And there are exceptions to this rule - like Peter Lynch.
The reason many believe is overperforming MF start to get lots of funds from investors since they became popular, and it becomes tough when the money gets too big.
But of course, it's a theory. And there are exceptions to this rule - like Peter Lynch.