Over many years, managed funds outperform index funds.

Question

Quizplus · Accepted Answer

Studies have shown that over the long term, the majority of active managed funds fail to outperform their corresponding index funds. Additionally, managed funds tend to have higher fees and expenses, meaning that even if they do outperform the index, the additional returns may be offset by the higher costs. Therefore, for most investors, index funds are often the more cost-effective and reliable choice for long-term investing.

Over Many Years, Managed Funds Outperform Index Funds