Well, in a positively skewed distribution Arithmatic Mean is greater than Median. This, a large population will always be less than Mean. Index has been defined as mean, and hence it beats the majority. Define index in terms of median and index will underperform. Index is good because of this definition.
Yes, nature of index like higher weightage of winners, cutting the losers, buy and hold strategy, 100 percent investment at all times are certainly good investment strategies.
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