“The only reason stock markets have been an excellent investment is because of the gargantuan returns generated by a handful of stocks (think Apple, Amazon and the likes).” Photograph: Mike Segar/Reuters

Most active funds underperform the market, but money managers say there are skilled professionals out there who can justify their fees. The key, some (...)

Traders on the floor of the New York Stock Exchange: even novice investors can grasp the simple logic underpinning the case for diversification. Photograph: REUTERS/Brendan McDermid

Everyone knows the old cliché about not putting all your eggs in one basket. A diversified portfolio might consist of different asset classes such as (...)