Are Actively Managed Mutual Funds Better Than Index Funds?

Mutual funds
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Welcome to “Ask Stacy,” a video feature where I answer a money question sent in by a reader or viewer. (Learn how to send in a question of your own below.)

Today’s question is about mutual funds: Are you better off “hiring” an active manager to pick the investments within a fund? Or should you invest in a fund that doesn’t need a manager because it’s designed to simply mirror the market?

While it may seem that having an expert in your corner would produce better results, expertise costs money. So which should you choose? Here’s what I think.

For more information on this topic, check out:

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The questions I’m likeliest to answer are those that will interest other readers. In other words, don’t ask for super-specific advice that applies only to you. And if I don’t get to your question, promise not to hate me. I do my best, but I get a lot more questions than I have time to answer.

About me

I founded Money Talks News in 1991. I’m a CPA, and have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.

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Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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