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agsr

i argue that a low fee balanced portfolio of passive investments will normally outperform actively managed.  Actively managed investments even if come with higher return compared to similar benchmarked assets.  
I opt for low fee ETFs to construct my balanced portfolio.
there is an interesting debate on this topic here, but I still vote for low fee passive.

Passive Versus Active Investing: A Debate

https://www.bloomberg.com/view/articles/2017-10-11/passive-versus-active-investing-a-debate

islander507

If passive investments would always outperform active then the hedge fund Industry wouldn’t exist. The point is that there are really smart fund managers out there who use either special tools, insights, or whatever that will outperform the market and their fees are worth it

joecavalry

Passive investments are usually better performing as log as they are done over a long term time period.

islander507

@joecavalry, in most cases I agree, but there are exceptional investors out there, look af warren buffet

natbarons

It’s depnsdant on a situation. Long term investments that are passive may be the best option.

MayCaesar

Passive investing is more reliable and stable, while active investing is very sensitive towards the choices made. In theory, active investing can produce a much bigger output: imagine a genius investor with an incomprehensible amount of knowledge who at any moment knows where the market is going to go, which company's assets are going to grow quickly, which currencies are going to drop  - and this investor will become a trillionaire very quickly by always making the perfect investment choices, and by actively reacting to the short-term changes on the market.

The other side of the issue is that if you are not as good at making the right investment choices, then active investing can burn through your assets much faster. Passive diversified portfolio tends to give a small, but steady, income, and in the worst case scenario it will give a small, but steady, loss of the investments.

However, this reasoning only applies to investing without involving third parties. As mentioned in the debate, unless you manage your investments personally, the managers will charge you much more for active investing, compared to the passive one. I would imagine that the net profits for the customers are equal in this case, as the market naturally adjusts the fees in such a way as to not favor one type of investing over the other.