Go over to Bogleheads and say that. They'll set you straight pretty fast. The point is that over a long enough period of time, there is no advantage to managed funds vs. index funds and the managed funds usually underperform. Some firms have played tricks with their funds to make them appear to beat the market, but it's never sustained.

But in the event of an extreme rally, your picked stocks can make you a huge return. Fast. Then you cash out and play it safe.

Risky, but this is why people try to beat the market. This is the allure of gambling.