Consistent performance over time

Ability to select specific stocks

Potential to outperform the market

High management fees

By investing in a single company

Through diversification across multiple companies

By frequently trading stocks

By employing expensive fund managers

Index funds have higher fees

Index funds are less diversified

Index funds may not outperform the market

Index funds have inconsistent performance

They don't require expensive fund managers

They invest in fewer companies

They have lower returns

They are less popular among investors

Investors can't choose the index to track

Investors can't remove specific companies from the index

Investors can't buy or sell shares frequently

Investors can't see the fund's holdings