Just as there are compelling stats in favour of active management especially when it comes to managing downsides....but the short answer is there is a place for both. I have stopped licking my fingers - and put down my newspaper( GREAT BEER BATTER!!) and this is key: a) a quality managed fund - will have a TER of about 1.2 - 1.5%pa iro the assets( COULD BE LESS - but must be an institutional pricing - not some idiot who is going to assemble retail funds for you - where he plays the role of secondary fund manager and switches stuff around - what a joke that is...and yet the majority of "advisers" seem to think that is their value add. Beats me. ) - To this price above,add the price of the "platform" on which the funds are held - should be about .45- 0.50%. Some offerings include the platform with the fund management - so can be less Total say 1.6 - 1.8% pa=parity pricing. b) an adviser ( like mine) charges me for TIME AND ADVICE - not asset based fees - he contracts with me to do a yearly review for which he charges R1000.00per hour - which Price is about 5hours worth of work. When we set up our relationship he did the full Monty - checked everything from taxes , to Will to who owns which property, income flows, rhubarb, rhubarb, - offshore probate and all that jazz. The initial fee was about R8- 9000 as I recall. Acts as a great sounding board too... He invoices me and all the interactions are reflected. He is accountable and is professionally insured ( Lawyer and CFP). So. Now work out that cost of ADVICE as a percentage of YOUR assets - nowhere near THIS 1%PA RUBBISH ....the best is I don't hand over 1/12 of 1% per month - I get to invest it until I pay my fees. I do have a contract with him - severable on 3 months notice and I have to see him once a year at least..... The only thing that is missing is the following .. where can I buy a decent bottle of Old Speckled Hen?