Performance evaluation of actively managed mutual funds and the puzzle of their acceptance by investors

The main purpose of this study is to investigate three reasons for not accepting index funds by investors and in contrast to investing in equity funds by them. The first reason is the better performance of stock funds in the long run than the overall index. The second reason is to manipulate the portfolio of equity funds by using the price effect by their managers and gain more returns in the short term. The third reason is that index funds do not track their follower index correctly. Based on the research results, the first and second reasons were rejected and the third reason was accepted for the short term.