Actively managed funds won’t be the cheapest, but the right picks can net your clients very attractive gains. Of course, that’s provided you recommend the right fund at just the right time.
These 20 funds are the top-performing actively managed funds over the past 10 years (with a minimum AUM of $500 million). The average fund posted an annualized gain of 13.3%, especially impressive since the beginning of that period included the financial crisis. Indeed, the S&P 500 posted a 7.6% gain in that period, as measured by SPY, the oldest ETF that tracks the index.
In addition to 10-year and three-year returns, we also show expense ratios of the funds, which averaged 88 basis points.
All funds benefit from being in the right place at the right time, and most of these funds are invested heavily in tech and health care.
To be sure, passive investing has gained in popularity in recent years as advisors and investors flock to low-cost options. Check back next week for the best passive funds.
Scroll through to see all 20 actively managed funds with the highest 10-year returns. All data from Morningstar Direct.