Passive investing beats active management from "summary" of All About Index Funds by Richard A. Ferri
Passive investing has a distinct advantage over active management when it comes to long-term investment success. The reason is simple: active managers charge high fees, which eat into investor returns. These fees can range from 1% to 2% or more annually, significantly reducing the overall performance of the investment. Furthermore, actively managed funds tend to underperform their benchmark indices over time. This trend has been observed consistently in various studies, proving that active management is not a reliable strategy for generating superior returns. In fact, the majority of actively managed funds fail to outperform the market in the long run. Passive investing, on the other hand, offers a low-cost alternative that tracks...
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