Can we expect mutual funds to generate alpha when there is so much liquidity?

Transcript: Alpha is the excess returns generated by the fund manager, relative to the risk that he is assuming. There are fund manager who have been able to generate significant alpha in the full market cycle. But investors should not get distracted by these hypotheses. Even if your fund managers do not generate great alpha, you can achieve your goal by following a set methodical plan. Continue your regular and periodical investments and make sure that your investments are for the long run. Also, make sure that your investments are beating inflation and that you keep away from dubious companies.

This article was originally published on May 03, 2017.