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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.

Chasing yesterday’s winners may feel safe, but it’s one of the fastest ways to destroy wealth. Funds that shine in headlines often disappoint once investors pile in, leaving latecomers with losses. Morningstar’s research shows how chasing past performance turns success stories into financial traps — and why boring, low-cost investing offers the real path to long-term wealth preservation.

International value is enjoying a powerful resurgence after a decade of underperformance. Driven by compelling valuations, governance reforms in Japan, and improving sentiment in Europe, the case for international value is backed by decades of academic evidence. Learn why it remains a core long-term opportunity for evidence-based investors seeking global diversification.

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.

New research reveals active fund fees are far too high for the value they add. So how much is active management actually worth? Investors routinely pay substantial active fund fees, typically five to ten times more than passive alternatives. It's the equivalent of paying £7 or £8 for a pint of milk—but is this premium actually justified? The academic case against high active fund fees has been building for nearly three decades. Now, groundbreaking research by Andrew Ang and D

Eugene Fama is one of several Nobel Prize-winning economists whose research undermines the case for using actively managed funds This is the second article in our 12-part series on Mark Hebner's Index Funds: The 12-Step Recovery Program for Active Investors. If you missed the first instalment on the addictive nature of active investing, catch up before continuing. In traditional recovery programs, the second step involves acknowledging a higher power. For investors trapped i

Active investing feels productive. Buying. Selling. Chasing hot tips. As investors, we think we need to be doing something. But it can easily become compulsive — an addiction that’s fed by financial professionals who profit from keeping us hooked. In his award-winning book, Index Funds: The 12-Step Recovery Program for Active Investors, my IFA colleague Mark Hebner explains why active trading is so tempting — and so destructive. He also sets out a rational alternative to acti

JONATHAN CLEMENTS is one of the best-known names in financial journalism. After starting his career writing glowing profiles of star fund managers, he began to see a pattern: most of them failed to deliver over the long run. Raised and educated in England, Clements moved to the United States after graduating from Cambridge University. His early years at Forbes magazine left him sceptical about active management. Even when a fund manager looked like a sure bet, the success rar

Hot funds often attract a rush of investor cash. But new research shows they’re more likely to underperform once they’ve hit peak popularity. Here’s why chasing recent winners could leave you trailing the market.

It is often claimed that active funds offer greater protection in falling markets. Unlike index funds, active managers can hold cash or shift into bonds to avoid losses. But the evidence suggests otherwise. According to TIM EDWARDS from S&P Dow Jones Indices, most active funds fail to beat the market in bear phases just as they do in bull runs. If you are worried about downside risk, there may be better, cheaper solutions than relying on active management. 1. Active funds sti

Before choosing a financial adviser, it is essential to ask the right questions. One of the most revealing is whether they recommend active or passive funds. Actively managed funds come with higher costs, and over time, those fees eat into returns. As investment author ANDREW HALLAM explains, the odds of outperforming low-cost index funds with active funds are slim. The good news is that more advisers are now turning to low-cost passive funds. If yours does not, it may be tim