<prompt> Human: I am a Vanguard 3-fund portfolio kind of person: My parents are into mutual funds. They like seeing the managers face and name on the prospectus. Majority of their portfolio is in these two funds: Leith Wheeler Balanced Series B and Beutel Goodman Balanced Class D They recommend these funds to me too.I know that very few mutual funds can beat their index less MER over the long term. But there are some actively managed funds like these which make sense to invest. How do I identify winners considering or despite their differences?  <response>: How do I identify winners considering or despite their differences?You cant identify which mutual funds are going to outperform in advance, which is the nexus of the entire index versus active debate. If you want to roll the dice and pay more to do so, actively managed mutual funds are fine. If you appreciate that you cannot tell the future and that most actively managed mutual funds dont outperform their given index over long periods of time after costs, go with index funds.On a different but related note, presumably you are an adult and can make a decision on how to use your money yourself. 