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I recently contacted my bank about 401k investment advice and specifically about investing in equity index based funds vs. managed funds. I was interested in what the Fools on this site this about his advice:

"My position is that there is room for both in a portfolio. This argument has become one of mutual exclusivity, meaning that one is better than the other and that they should not coexist. To use the baseball analogy, why don't you just put 9 second basemen on the field who will bat .275 year in, year out? Of course, every team needs a Mark McGuire or a Babe Ruth who can be counted on to provide heroics (i.e. VanKampen Emerging Growth's 103% return in 1999 or Franklin's Balance Sheet Small Cap which has consistently outperformed the S&P with 1/3 of the risk).

Every investor should make an intelligent decision regarding his planning after weighing all of the facts. As an aside, the Motley Fool folks also say to remain heavily weighted in technology without any exposure to bonds. The average managed bond mutual fund beat the S&P last year, as well as this year, not to mention the technology returns. Be careful what you read because your source is paid by the advertising that is done in the media. Understand asset allocation and diversify your portfolio using both index and managed funds. Don't allow returns alone to guide your decision."
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