The majority of mutual funds are under-performing the index. This is in addition to the stock market indexes being down across the board year to date this year. Many retail investors do not realize that mutual funds most of the time have strict mandates to be almost fully invested, which in high volatile markets can cause mutual funds to not fare well in protecting clients assets from market volatility.
That is how RIAs like our firm can really add value to clients in ways that mutual funds can not. We can be more nimble in our investment and asset allocation strategy and attempt to " side step" market downturns in ways the "fully invested" mutual funds many times can not.
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