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Indices vs. Actively Managed Mutual Funds

Standard & Poor's has released it's annual Indices Versus Active Funds Scorecard (SPIVA) and the battle between actively managed funds and the indices they benchmark against ended 2005 in a stalemate, the firm announced. ...indices outperformed a majority of active funds in six out of nine style boxes last year, while active funds outperformed indices in the other three. According to the Scorecard, the S&P MidCap 400 outperformed 76.0% of actively managed mid-cap funds, and the S&P SmallCap 600 outperformed 60.5% of actively managed small- cap funds in 2005. Conversely, 55.5% of actively managed large-cap funds outperformed the S&P 500 during the year.