Picking active fund managers means you’re betting against statistical odds - and paying higher fees in the process. 

 

When it comes to your portfolio, you have two choices. Active management is when an investment manager has discretion to buy and sell stocks and bonds they believe will do best, beating other managers and existing benchmarks, while passive investing replicates an existing index. It may sound smart to use an active manager who is personally evaluating your portfolio for your financial benefit, but statistics show it is virtually impossible for active managers to outperform the market over time. Essentially, choosing active managers means betting against the odds, with only a 5 percent chance of beating them.