I was discussing with one of my friends on Telegram on fund investment decisions and our topic gravitated towards whether I am concerned about the performance of a certain actively managed fund. This is the moment where I detect that he might have to tweak the way he evaluates whether he should invest in some of these funds. I suspect that many would try to evaluate investments the same way. If luck would have it, your investments may work out beautifully but in the absence of luck, future performance may not be up to your expectations. And sometimes, you would draw the wrong conclusions from the performance that you experienced. So here is something for everyone to think about when considering investments that are managed by others. How Tough is it For Active Funds to Outperform their Benchmarks Let us establish some base rate or first principles of how likely...