Active vs Passive Investing ... Which Path to Take?

Passively managed mutual funds have been all the rage in recent years. They've taken market share from their active counterparts across the board, with $662 billion in inflows worldwide in 2017, according to Morningstar's 2017 Global Assets Flow Report released on May 21, 2018.

However, as with any fund or asset, investors must do more than just follow the crowd. They need to understand the differences between "passive" and "active" mutual funds so they can make informed decisions moving forward.

First, some definitions

Passively managed index funds