1. Mutual Fund companies manage the wealth of small investors.
Wrong. Fund managers appointed by the mutual fund companies manage the wealth, not the companies themselves.
Wrong. More than 80% of all mutual funds have given less than benchmark returns in the last 5 years. So, no. Small investors can't beat the market with help of any random mutual fund.
Most fund managers aren't smart. If you put all the fund managers in a class, only like top 2-3% do really well. Remaining everyone just do so-so or just plain suck.
Wrong. Most mutual funds don't even hold stocks for that long. Average holding period of any stock in a mutual fund if you take all the AMCs in India, is about 16-18 months. Talk about long term!
Wrong. Stock selection by most mutual funds has no basis or backing in their proclaimed philosophy.
Nope.
There's this popular quote in the fund manager circle - "Nobody gets fired for investing in IBM". Fund managers usually take the safer route and do what other people in their industry do.