Index and no-load funds seem like a no-brainer, why do managed funds exists?

Question

All my investments are in managed funds and to be honest the gains have been mediocre for more than 8 years. I feel I am missing something, why do we pay these professionals that dont seem to add value

Answer 1

you are probably buying the wrong ones. look at the composition and see if it is similar to the other guys.

Answer 2

80% of managed funds don't beat the SP500 over the long term, but 20% do.  Some like BRKA are famous for beating the SP500.  That manager says most people would be better off buying into a passive low fee index instead of a managed fund.  Over the long term 3% can be a big difference and some thing a managed fund will give them that edge.