Buy the whole market
By owning the entire market you are guaranteed to receive the average return of all investors. It may sound bad to be average but in this situation it is a great thing since the majority of investors do worse than average. The thing fund managers dont want you to know is that with the fees and taxes inherent to actively managed funds index funds outperform them consistently every year.
"Most of my investments are in equity index funds."
- William F. Sharpe, Nobel Laureate in Economics
So investors shouldn't delude themselves about beating the market?
"They're just not going to do it. It's just not going to happen."
- Daniel Kahneman, Nobel Laureate in Economics
Over the past 30 thirty years more than two-thirds of professional portfolio managers have been outperformed by the S&P 500 index
-Burton Malkiel, Professor economics Princeton university