Various studies reported in the literature overwhelmingly reach the conclusion that the mutual funds in general have not outperformed the market. This result seems at variance with the tremendous growth the mutual fund industry has experienced over the past two decades. If the market efficiency hypothesis is valid, and there is considerable evidence in its support, then a mutual fund may not be able to consistently outperform the market. However, while an average mutual fund does not outperform the market, the mutual fund industry as a whole may be able to do so.