It's a descriptor, not a predictor.
Investors should be cautious of rapid inflows into high-yield and bank-loan funds as managers could have difficulty putting excess money to work in high-conviction ideas.
Your approach is the tell.
Morningstar's Russ Kinnel, Sarah Bush, and Christine Benz highlight their top fund picks for domestic and foreign equity, core bond, inflation-protected securities, and much more.
Why investors get less than their funds' total return.
Properly levied, a performance-based fee puts shareholders and managers on the same side.
There are reasons to tilt active or passive, but provided investors are picking low-cost, proven funds, they can be successful with either or both types of investments, says Morningstar's Russ Kinnel.
But the majority of readers say they use actively managed funds, too.
A handful of funds have gotten all the love in the wake of Bill Gross' departure from PIMCO, but investors can widen their scope.
Investors flocked to these funds in the wake of the bear market and have made good money ever since.