Shocking revelation when i learnt of it. Graphs are depicted on unit trust brochures indicating their past performance compared to index and/or other funds.
If the market drops 50% & the fund lost 48% it's considered as beating the market. What consolation is that when $ is lost? The investor ought to sell near the top of bull market (though is not easy to judge) & not like the fund riding down when the bear takes over.
There is a time to be in the market & a time not to. Perhaps that's why Warren Buffett's #1 Rule: Don't lost $, #2 Rule: Don't forget #1 instead of making $.