Index funds consistently beat actively managed funds because actively managed funds incur
greater management costs.

Name: Index funds consistently beat actively managed funds because actively managed funds incur greater management costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because actively managed funds have higher management fees, trading costs, and other expenses that eat away at their returns, whereas index funds have lower fees and expenses as they simply track a benchmark index.

Index Funds Consistently Beat Actively Managed Funds Because Actively Managed