I am very curious about this myself. I currently have all active managed funds. I have been hearing alot about index funds, but, I do not see the advantages, unless I am missing something.
I understand the lower expenses, but from what I see they come with lower returns.
I am not against index funds at all, I just haven't seen how they can help my portfolio.
From what I can tell, my actively managed funds would only have to beat the index by 1% - 1.5 % per year
If I look at all of my 14 funds over the last 5-10 years it has not even been close. 100% of my funds have beaten their respective index handily.
When they say that an index fund beats the " average" actively managed fund, I have to wonder about those " average" funds. I think the information is deceptive in that most people seek out the best performing funds not the " average" fund
