Mentioned: Vanguard Capital Opportunity Inv (VHCOX) , Fidelity® Contrafund® (FCNTX) , American Funds Growth Fund of Amer A (AGTHX) , T. Rowe Price Growth Stock (PRGFX) , Harbor Capital Appreciation Inv (HCAIX)
- Recent reports suggest investors are fleeing active funds in droves, and not even successful active funds have been immune.
- This is largely a phenomenon among active U.S. stock funds; in other asset classes, past performance still appears to strongly influence flows to active funds.
- Among active U.S. stock funds, past performance appears to explain asset growth, even after accounting for fee differences.
- Some successful active U.S. stock funds are likely seeing outflows as part of a larger structural shift toward indexing and wider diversification; this reflects broader currents, including changing advice practices.
- Winning large-growth mutual funds account for a disproportionate share of outflows from successful active U.S. stock funds overall.
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Jeffrey Ptak does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.