So one fund effectively loses while another fund effectively wins. That does not mean that both funds can't make money at the same time. For example, if the average market rise in a given period, maybe 2009 or whenever, is say 10%, then Fund A could make 15% and Fund B could make 5%, typically, and everything would just average out. :)
Of course, you can do the math yourself. Fund A would make an extra 5% and Fund B, in return, would lose an extra 5%. That is how the world goes around for Benny.
Tomorrow, we will check on the other end of the scenario, i.e. what happens if the overall market goes down in a given time period as opposed to up. That's a great story!
