A new study shows that investors who have multiple managers under one asset class may hurt returns, InvestmentNews reported.

Portfolio Solutions LLC and Betterment LLC released a research report showing that nine out of 10 portfolios using three active managers per asset class did not beat a similar portfolio of index funds.

One actively managed fund per asset class beat the all-index portfolio 17 percent of the time. Overall, the multi-manager approach didn't work even when the portfolios outperformed, Jason Kephart writes:

The problem with the multiple-manager approach isn't just that the majority tend to underperform over any given time period but that the funds that do outperform don't do so by enough to offset the losses.

You can read the full story here.  

Edited by: Casey Quinlan


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