Low fees and solid performance are not guarantors of future results, according to a newly published Lipper study, The Wall Street Journal reports. The odds of picking winning equity funds are slim, according to the Lipper report, which found that more than 70% of all domestic actively managed domestic stock portfolios during the past decade lagged performance benchmarks set by the Standard & Poor’s 500 Index.

The Lipper study, which compared thousands of funds grouped into categories based on fees and overall performance, found that investments with lofty annual expenses often outperformed cheaper alternatives. The study reached its conclusions by comparing three-year category average track records dating back to 1989.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.