Resuming, as I understand it:

Good stock pickers > Index Funds (blind money) > Bad stock pickers

By investing on index funds you are betting in the average of the average (a fund is already an average of undervaluated and overvaluated stocks).

However, by investing on managed funds your probability of having profits over index funds is low: even if stock pickers that beat the market (by definition) amount to 50%, extra fees make most of them still less profitable to investors than passive funds.

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