How You  Can Simply Outperform Mutual Funds

1. If trouble is detected in a stock or the market you either take your profits and get out, or short sell. On the other hand, Mutual Funds cannot exit the market quickly since they own huge amounts of shares, and unloading them to the market can be disastrous. Consequently, unlike individual investors they either have to stick to their positions in downtrends or suffer a huge loss in market trend changes upon exiting.

2. By law, Mutual Funds can not short sell more than a certain percentage of their assets, whereas you can short sell in bear markets and grow rich in a faster pace, while big institutions are still unloading their stocks to the market.