I’ll assume they have a higher risk to generate those higher net returns.

After recently reading A Random Walk Down a Wall Street, my conclusions are: you are not going to time the market, the managed funds don’t do any better than index funds. 90% percent of the effort goes into squeezing out an additional 10%. So may as well spend 10% of the effort and settle with 90%. Of course fortunes are made on that 10%.

Joe Blow slinging garbage cans can retire a multimillionaire by steady, passive investing.