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.
Most people think share owners are greedier, more selfish and more inclined to gamble than everyone else. Research across 11 countries finds that belief predicts who invests and who doesn't, and that it bears no relation to financial knowledge. Offered an identical bet, people took it when it was called a lottery ticket and refused it when it was called a share.
TEBI
4 days ago4 min read
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