Here's a nice piece by Jonathan Clements at MarketWatch on index fund investor performance versus active fund investor:
Are index-fund investors smarter?
The article presents interesting findings by Morningstar on dollar-weighted returns for active fund investors and index fund investors that support what we present here on an ongoing basis.
What interested me was his observation on why indexers tend not to jump in and out of the market at the wrong time. He observes that indexers have a single worry - the performance of the market whereas active fund investors have two concerns - the performance of the market and the worry of the active fund they are invested in.
Although he didn't mention it, this combined with the risk averseness of investors clearly makes active fund investing for many investors a real challenge - especially in volatile markets such as we have experienced recently!