The managers running the biggest active funds picked stocks that beat the market in 2025 — and most still lagged their benchmark. A Morningstar do-nothing experiment and a body of academic research explain why active funds underperform even when the picking is good: skilled buying undone by poor selling, the hidden cost of trading, and the incentives that keep managers churning. The UK evidence points the same way.
Investment platform design significantly influences investor behaviour, new eye-tracking research reveals. Simple changes like larger fonts for fund fees led participants to allocate 11.2% more to lower-cost options. The study shows how visual prominence affects investment choices, suggesting platforms could improve outcomes through better interface design without regulatory changes.
TEBI
Jul 21, 20255 min read
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