Mutual funds perform at random

I just saw this study by Benchmark Asset Management Company called the "Myth of Predictable Alpha". It gives recent evidence (again) that mutual fund performance is random at best, and provides no benefit over blindly investing in the index. Any out-performance over the index is neutralised in subsequent periods by sub-index performance. And this is before expenses. So, Benchmark says, go ahead, waste your money on actively managed funds.

See also their "Myth of Eternal Alpha"