Mutual fund performance equity funds: on average, active managers underperform index funds when both are measured after expenses, and those that do outperform in one-period are not typically the ones who outperform in the next Fixed-income funds on average bond funds underperform passive fixed -income indexes by an amount roughly equal to expense, and there is no evidence that past performance can predict future performanceMutual fund performance • Equity funds: on average, active managers underperform index funds when both are measured after expenses, and those that do outperform in one-period are not typically the ones who outperform in the next. • Fixed-income funds: on average, bond funds underperform passive fixed-income indexes by an amount roughly equal to expense, and there is no evidence that past performance can predict future performance