While it is probably a poor idea to own actively managed funds in general, it is truly a terrible idea to own them in taxable accounts… taxes are a drag on performance of up to 4 percentage points each year… many index funds allow your capital gains to grow largely undisturbed until you sell… For the taxable investor, indexing means never having to say you’re sorry.
![While it is probably a poor idea to own actively managed funds While it is probably a poor idea to own actively managed funds Image](https://www.idlehearts.com/images/while-it-is-probably-a-poor-idea-to-own-actively-managed-funds.jpg?x85372)