Swastika Investmart Limited

“Disclosure! The returns noted by mutual funds aren’t really earned by mutual fund shareholders.”

This is how John Bogle, founder of Vanguard Mutual Funds. Starts the
chapter titled "The Grand Illusion" in his 2007 book, "The small Book of
Common wisdom investing." The “grand illusion” Bogle is referring to is
the fact that mutual fund shareholders constantly fail to make the
profits of the monetary markets. According to Bogle, during the 25-year
time from 1980 to 2005, the return on the share market (as considered by
the Standard & Poor's 500 index) averaged 12.5%/year, yet the
average fund shareholder earned a mere 7.3%, or less than 60% of what
the average fund returned.