I am sure you have been shocked by the headline! I find just too many people who think they can beat the index every year for a long period of time. In case you see the history of equity markets there are only a few people who have beaten the index returns consistently over long periods of time.

In real life I am yet to see any ‘common man’ beat the index regularly. Many people do not even measure it – for fear of finding out the truth.

Crimes like Madoff, Ponzi, etc. happens only because just too many people chase returns above the index. Thankfully most of the mutual fund managers know that to get some alpha (returns over and above the index) they have to take some chance. Hope they know how much risk they are taking…