In the perpetual performance contest between actively managed mutual funds and their lower cost, index fund rivals, the winner for 2006 is1/4both, according to a report from The Wall Street Journal.

In five out of the nine major U.S. stock fund categories as defined by the Chicago investment research firm Morningstar, however, actively managed funds beat their target indexes. But that doesn't mean man triumphed over machine, warned Russel Kinnel, director of research at Morningstar.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.