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Fund Spy

The Payoffs and Penalties of Investing in U.S. Active Funds

We look at recent research and results before fees.

Here’s a question investors often ask: Where should I invest in active funds and where should I index?

For a good many, the answer is simple: They shouldn’t invest in active funds anywhere. Why? They lack the time to do the research or the resolve to stick with it when adversity sets in. Given this, they ought to focus on managing what they can--saving, diversifying, and minimizing expenses, including taxes, by indexing across the board. Even if that theoretically means forgoing some extra returns.