How To Choose The Best Actively Managed Mutual Funds

How can I choose the best actively-managed mutual funds?

There are nearly 18,000 different mutual funds out there and most of those are actively-managed funds. Finding a really good active-manager is like finding a needle in a haystack. It's very, very difficult. What I would recommend are, one, going online, doing some research, and looking at the performance of the active-manager. You want to make sure that the active-manager that you're choosing has beat their benchmark in the last one, three, five and ten years. That's a good indication that these active-managers are actually doing their job pretty well. You want to look at the expense ratio. I would look at funds that are less than one-and-a-half percent. Don't go above that. You're really not paying for much when you go past one-and-a-half percent.