Good funds are often also cheap – because their performance is not hampered by high costs. Conversely, not all cheap funds are good. A good active fund must meet two requirements: First, the fund manager must deviate significantly from its comparison index, the benchmark. He has to position himself actively so that after costs, something still sticks with investors. Just weighting a few stocks slightly higher or lower than the index won’t get you very far.
The second requirement: the manager must have a high level of expertise in order to be able to use his freedom profitably. If these premises are given, it also works with the added value for the investors.
Also read: ChatGPT or Dog Freddy – Who Recommends the Better Stocks?