Trust in passive, rest must bring data: Investment mantra for better returns

The debate between passive and active funds centers on cost, risk, and performance. Active funds, managed by professionals aiming to outperform benchmarks, offer flexibility and potential for higher returns but come with higher fees and greater risk. Passive funds track market indices, providing lower costs, reduced risk, and returns that closely mirror the market, though they rarely outperform it. Recent data shows passive funds often outperform active ones after fees, but active management can excel in certain categories or market conditions, making the choice dependent on investor goals and risk tolerance