Investors have lost around £3 billion in the past five years by paying for actively managed funds which merely tracked the market, according to recent claims by the True and Fair Campaign.
Last weekend's Money Box on BBC Radio 4 spotlighted 'closet trackers' - funds which charge fees for active management but which, in reality, invest some or most of their investors' money in tracking the market. Market tracking is a good strategy, but why should investors pay for active management when they're not getting it?
Listen to the programme by clicking this link. The relevant item begins at 18.10 minutes.