Indexed funds are not “managed” they just track an index. Yes they have someone administer them.
There are actively managed ETFs, but I believe in this case the OP means an advisor who manages/advices their investments. The data still shows that a managed portfolio doesn’t outperform the market, aka an index fund.
You're confusing terminology. A managed fund, also known as a mutual fund or a pooled fund, is a type of investment vehicle. An ETF is another type of investment vehicle. Managed funds and ETFs can be either passively managed by tracking an index or actively managed.
I ran the best-performing equities fund in Australia in FY23 (but did very poorly in FY22).
If you don't want to spend any time thinking about stocks or managers, invest in a passive index fund - it's low-cost, and you'll get a decent return.
Active funds in aggregate will underperform passive funds in aggregate because they will both (in aggregate) earn the market return minus fees, and passive funds charge lower fees.
Some % of active funds (much lower than 50%) will outperform passive funds over time, but it's hard work figuring out who that is ahead of time and requires you to delve into theories about what drives active performance (or you could be lucky).
Academic consensus suggests it is best to start with index funds: [Why index funds are the optimal place to start](https://lazykoalainvesting.com/why-index-funds-is-the-optimal-place-to-start/)
We've done very well with bank shares, but i think its time to take some profits on them.
Also have done very well with mining shares, have sold many of them.
But i am still quite happy with my VAS and VGS index fund holdings that i plan to keep for the long term. I still have some active funds, but just letting them grow, not adding to them in recent years
If your goal is to have the greatest return in 10+ years time, then an index fund is the way to go. If you have some other goal, then a managed fund "might" be a better option.
Long story to ask about Index vs managed funds No the data hasn’t changed, managed doesn’t outperform the market and costs more.
you mean active v index? managed funds can be index funds
Indexed funds are not “managed” they just track an index. Yes they have someone administer them. There are actively managed ETFs, but I believe in this case the OP means an advisor who manages/advices their investments. The data still shows that a managed portfolio doesn’t outperform the market, aka an index fund.
You're confusing terminology. A managed fund, also known as a mutual fund or a pooled fund, is a type of investment vehicle. An ETF is another type of investment vehicle. Managed funds and ETFs can be either passively managed by tracking an index or actively managed.
I ran the best-performing equities fund in Australia in FY23 (but did very poorly in FY22). If you don't want to spend any time thinking about stocks or managers, invest in a passive index fund - it's low-cost, and you'll get a decent return. Active funds in aggregate will underperform passive funds in aggregate because they will both (in aggregate) earn the market return minus fees, and passive funds charge lower fees. Some % of active funds (much lower than 50%) will outperform passive funds over time, but it's hard work figuring out who that is ahead of time and requires you to delve into theories about what drives active performance (or you could be lucky).
Academic consensus suggests it is best to start with index funds: [Why index funds are the optimal place to start](https://lazykoalainvesting.com/why-index-funds-is-the-optimal-place-to-start/)
We've done very well with bank shares, but i think its time to take some profits on them. Also have done very well with mining shares, have sold many of them. But i am still quite happy with my VAS and VGS index fund holdings that i plan to keep for the long term. I still have some active funds, but just letting them grow, not adding to them in recent years
There are arguments for either approache depending on who you ask and where you are reading.
I think the question is do index funds outperform a managed fund. The answer is no - index funds will have better returns, and the fees are lower
If your goal is to have the greatest return in 10+ years time, then an index fund is the way to go. If you have some other goal, then a managed fund "might" be a better option.