the answer would be to impose limits to the complexity and scale of investment funds, and to portfolio diversification. if you want safety, buy savings bonds. if you want returns, invest wisely or bear losses. 1/

it will always be the case, for any form of fund with free entry, eventually funds of that form will not outperform the market after fees. as @tylercowen.bsky.social might say, solve for the equilibrium. /fin