Flee Actively Managed Mutual Funds
Let me quote extensively from Ferri's "Power of Passive Investing" book.
"In every asset class, the odds of beating index funds are low, and the payout for being right is well below what a fair payout should be. The only conclusion one can draw from this data is that active management cannot compete against passive management in any asset class, style, or sector in the long run.
"Only U.S. equity index funds were available to investors up until the 1980s. Investors had no choice except to purchase high-cost actively managed mutual funds for most asset classes. This is no longer true. Today, there are hundreds of low-cost index funds and ETFs that cover a wide variety of asset classes, styles, and sectors. Choose funds that follow understandable market benchmarks, have low fees, are fully liquid, and tax efficient."
Ferri supports the above statements with mounds of data in his book. I highly recommend it to all serious passive investors.