Index funds match active fund returns

Fund researcher Morningstar says the average “active” Australian equities fund open to retail investors returned 42.9 per cent from the end of February 2003 to the end of October this year 2004, while similar “index” managers returned 42.64 per cent. In each case, the return takes into account dividend reinvestment. Yet the active fund managers charge a significantly higher fee than the index fund managers.