Why would you want to disrupt prop trading? Prop trading is about allocating resources to their most productive use. High frequency trading is a particularly stupid target; high frequency traders provide liquidity. Without them, you might place an order that goes unfilled. Is that a good thing?<p>Regarding mutual funds, you can get better (and more volatile) returns with an index fund. No one disputes this. But what if you want a tuned investment strategy? A mutual fund I'm invested in tries to make large profits right now (while I'm young) from high risk investments, and over time transitions into low risk investments (to protect my retirement). It won't beat the market, and it isn't meant to.