It is a known fact that fund managers do not (on average) outperform the market. Infact with fund managers all investing in the same market it is logical that half will get above average returns and half will be below average.

The main service a managed fund can provide is a reduction in risk. They do this through diversification (through holding a large portfolio of stocks) or by investing in a lower risk portfolio of stocks (but consequently for a lower expected return)....Read Full article