Active Versus Passive Management: Salary and Performance

Studies have shown that just 24 percent of mutual fund managers that are active have outperformed the market index, which is a shockingly low number to see over the last 10 years. This isn’t the only data that has gone through as surprising over the recent study—let’s look at some of the other numbers that matter most to you.

 Active Versus Passive Management

Managers that are currently active are earning 0.12% more in returns before fees compared to index investors. However, these managers have been charging an average of a 1.07% fee, while the index fee has been sitting...