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Why have index funds performed so well relative to actively managed funds?

April 26, 2017funds index managed Performed relative

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Why have index funds performed so well relative to actively managed funds?

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10 Posted

ANSWER Part of this performance is due to lower fees charged against indexed funds. Also, commissions paid on security transactions are very low because of the large size of the funds. In addition, almost no uninvested cash is maintained by the funds, and there is very little asset turnover.