How to invest £10k and get the best return

5. Choose between active vs passive investing

One way to keep costs down is by using passive funds, also known as index funds. Rather than employing an expensive manager and research team to pick stocks, an index tracking fund just aims to deliver the same returns as its target index (the FTSE All Share or FTSE 100, for example). These can be purchased for a fraction of the cost of actively managed funds, the latter which often underperform the index anyway.

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