Actively-managed vs Passively-managed Mutual Funds

This video discusses the difference between an actively-managed and a passively-managed mutual fund. With actively-managed funds, the fund manager is frequently buying and selling the assets within the fund. This leads to: (1) a higher expense ratio, since the fund manager will want to be compensated more and the frequent buying and selling will increase trading costs, and (2) more risk, since fund managers have only been able to beat the market about 20% of the time. Passively-managed funds, on the other hand, typically track an index and thus require very little from the fund manager (hence leading to lower costs and less risk).-
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[@carriepanumpang2852]

thank you for this informative video