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Terry Smith's Fundsmith beat the market for a decade, then trailed four straight years. £3.31bn fled in 2024. Most investors lost money vs a tracker. Why? Timing. They bought high after stellar returns, sold low during underperformance. Jack Bogle's iron law: money arrives after gains, leaves during losses. Even star managers can't beat that.

You check your energy bill religiously. When your provider raised charges by £12, you noticed within days. You've compared broadband three times this year, saving £8 monthly. But when did you last calculate your all-in investment fees? That £3 broadband overcharge equals £36 yearly. A 1% overcharge on a £500,000 portfolio equals £5,000 annually—139 times more. Yet the smaller cost receives obsessive attention whilst the larger goes unexamined for decades. This article reveals

Fidelity's active funds built their reputation on Peter Lynch's legendary returns. But 30 years of data reveals zero funds with statistically significant outperformance. Most telling? Fidelity's own $723 billion bet on zero-fee index funds—bigger than its flagship active fund. When Peter Lynch's company stops backing Peter Lynch's strategy, the evidence speaks louder than marketing.

The so-called stock-picker’s market is a myth that fund managers use to justify their fees, whatever the market does. Decades of data show that even when conditions should favour active managers, most still underperform. The evidence is clear: simplicity, not stock-picking, wins in the long run.

Stephen Yiu's fund returned 101% in three years. His advice to investors? Buy an index tracker instead—your odds of picking a winning active fund are "worse than a casino." Academic research reveals why even successful managers keep their own money in index funds. Here's how to escape the active management trap.

A new study shows alpha’s value is tiny. Even rare “winning” active funds add just basis points, often less than fees. Here’s why indexing wins.

New research reveals buffer fund marketing promises don't match reality. AQR Capital Management's comprehensive study of 401 buffer funds shows these complex products consistently underperform simple stock-cash combinations whilst failing to deliver reliable downside protection. The median buffer fund charges 0.79% annually but trails reference assets by 0.07 in risk-adjusted returns, with performance worsening over time.

The relationship between active funds and volatility has long been debated, with fund managers claiming turbulent markets play to their strengths. 2025's Trump-driven chaos provided the perfect test case – yet 71% of active equity managers still underperformed passive benchmarks. Despite currency swings, sectoral rotations, and policy uncertainty, the 29% success rate barely budged from 2024's 28.8%. Academic evidence spanning 25 years confirms: volatility doesn't save active

After six years, Neil Woodford faces a £5.9m fine - barely 4% of the £160m+ in fees he extracted from investors. With thousands losing their life savings in the fund collapse, this penalty is truly a drop in the ocean compared to the wealth destruction caused and personal enrichment gained.

Fund managers consistently fail at market timing despite claiming expertise, reveals the largest global study of mutual fund performance. While stock picking skills vary by country, timing abilities are universally poor across 21,000 funds in 35 nations. New research challenges industry claims about professional investment skills and fee justification.

New research reveals active fund fees are far too high for the value they add. So how much is active management actually worth? Investors...

Eugene Fama is one of several Nobel Prize-winning economists whose research undermines the case for using actively managed funds This is...

Active investing feels productive. Buying. Selling. Chasing hot tips. As investors, we think we need to be doing something. But it can...

JONATHAN CLEMENTS is one of the best-known names in financial journalism. After starting his career writing glowing profiles of star fund...

It is often claimed that active funds offer greater protection in falling markets. Unlike index funds, active managers can hold cash or...

Before choosing a financial adviser, it is essential to ask the right questions. One of the most revealing is whether they recommend...

Yes, annual management fees for actively managed funds are far higher than they are for index funds. But it’s the linked costs of active...