As many of you aware that 75% of mutual fund investment in western countries are in Index funds whose returns closely mirrors the index and has less expense ratio. It is slowly catching up in india as well as we can see every mutual fund house started slews of index funds recently.
My question is whether Index fund concept will give any edge over actively managed funds over the long term say in next 10 years? Is it wise to invest in index funds when the good actively managed fund gives 5-10% better returns over them?