FYI: Providers of actively managed mutual funds encourage investors to ignore or excuse the overwhelming evidence that passively managed index trackers consistently, and by a significant margin, outperform them.
Active managers often use one of two basic arguments: Certain types of assets, such as shares of smaller companies or companies in emerging markets, are sufficiently under-researched on Wall Street that a good active manager, backed up by sound analysts, can beat index returns, or else that the way that passively managed portfolios are constructed leaves them at a disadvantage under certain market conditions.
Regards,
Ted
http://www.marketwatch.com/story/heres-why-you-shouldnt-dump-active-fund-managers-completely-2016-11-05/print