Can individuals not win because active funds cannot beat the index?

The other day, an acquaintance

said, "Most active funds lose to the index. Since professionals can't win, individuals have no chance of winning."

was telling a common story.

I think it's not like that because the underlying conditions are too different.

1. Active funds are at a disadvantage as they compare after accounting for their high management costs.

2. The amount of assets under management is too different. Even if individuals sell all their shares, unless they are very wealthy, they will not have much impact on the market, unlike funds with a large amount that cannot do such things at once. Likewise for buying.

3. They are influenced by the inflow and outflow of funds. There are situations where one must buy or sell, reducing flexibility.

Well, in the long run, most individuals seem to lose to the index, but it's not necessarily impossible to win.