If Professional Fund Managers Struggle to Beat the Index, What Should Investors Do?

According to the latest SPIVA India Scorecard, 75% of Indian large-cap funds underperformed their benchmark over 1 year.

Over longer periods:

• 74.2% underperformed over 3 years
• 84.4% underperformed over 5 years
• 76.3% underperformed over 10 years

So here's the question:

If even professional fund managers struggle to consistently beat the index, should investors spend their time chasing the "best-performing" fund?

This doesn't mean active funds are bad. Some will outperform.

The bigger challenge is identifying them in advance—and knowing whether that outperformance will continue.

The Bigger Investing Lesson

Instead of constantly asking "Which fund will beat the market?", perhaps investors should ask:

"Can I build a disciplined, systematic strategy and stay invested long enough?"

Consistent investing, clear rules, diversification and patience may matter more than constantly trying to predict the next winner.

The goal isn't always to beat the market. Sometimes, the goal is simply to participate in it—systematically and without emotional decisions.