There has been a lot of debate over the years about whether active fund managers add value, or whether you are better off investing into a low-cost alternative such as an index fund or exchange traded fund (ETF).

The reality is not as simple or clear-cut as the marketing teams on either side make it out to be. You need to be very careful about what you invest in, and therefore make informed decisions.

Caveat emptor – the principal that the buyer alone is responsible for checking the quality and suitability of what they are purchasing – is a phrase that is becoming more important than ever. In this article, we look to explore why this is the case.

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