by Dave Baxter, Investors Chronicle, September 11, 2025:
With markets racing ahead again despite heightened uncertainty, passive funds have made plenty of ‘easy’ money this year.
This is an intimidating backdrop for those seeking to beat the market, be it via an active fund or their own stock picks. Active funds do not have the best record, but there are good reasons to consider such portfolios.
Those that do beat the market tend to build substantial outperformance over time, while the concentration of returns in a handful of stocks means that taking a more nuanced approach might pay off in future.
A problem, of course, is that the world is awash with choice.
There are thousands of active funds available, and scores of active managers claim they know best and have a superior investment process. Sifting through so many choices and picking out the best names seems an impossible task.
Such issues justify our Top 50 Funds list. Each year we assess the market and, with the help of a panel of specialists, compile a concise selection of standout names operating in a range of sectors and asset classes.
Read more here