For a growing number of investors, actively managed mutual funds seem like dinosaurs. The active funds are expensive and lag the benchmarks, say proponents of passive investing. Confronted with a top-performing active manager, the critics shrug and argue that the great returns could be due to luck. Just because an active manager shined for the past five years does not mean that he will succeed in the future. Many academic studies support the use of index funds. On average, actively managed ...

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