We spend a lot of time at listening to debates on whether low-cost index investing is better than paying someone to manage your money. During these debates, there's invariably a chart that compares the performance of a fund against an index. The problem is that fund returns aren't always represented in the same way. Sometimes the reported returns are annualised, sometimes since fund inception. Sometimes costs and performance fees are deducted, sometimes not.

Interpreting fund returns is as important for investors considering a fund as it is for index investors looking to gloat over how little their investments are costing them. In this episode of The Fat Wallet Show, Simon and I try our best to park our predilection for index investing and throw a bone to our friends in the active space. I pick Simon's brain to find the best way to interpret active management fact sheets. Unsurprisingly we both end up gushing over index investments. We tried, though.

Kris