Active fund management competes with clever marketing. Most active fund management companies have several actively managed funds. They close or merge low per

Active fund management competes with clever marketing. Most active fund management companies have several actively managed funds. They close or merge low performing ones or turn them into closet index funds (index hugging). They market those funds that happen to perform just now and show 1-3 year performance numbers. Newcomers can sell simulated profits without fees or trading costs.