Active mutual funds historically outperform passive mutual funds.

Question

Quizplus · Accepted Answer

While there are certainly examples of active mutual funds that have outperformed passive mutual funds, on average, passive mutual funds tend to have lower expense ratios and more consistent returns over the long term. Additionally, few active mutual funds are able to consistently beat their benchmark indexes. Therefore, the general consensus among financial experts is that passive mutual funds are a better choice for most investors looking for long-term growth.

Active Mutual Funds Historically Outperform Passive Mutual Funds