File - Buffett will leave the majority of his money in a fund.
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Fed up with high fees and poor performance, investors are increasingly shunning active fund managers who promise to beat the stock market in favor of cheaper, passive funds, which simply track it.Such funds account for about a quarter of the money invested in the U.K. stock market, up from 15 percent a decade ago. The switch is accelerating, with index funds attracting inflows of $3 billion in the first half of this year, while active U.K.-focused funds saw $4 billion leave, a Reuters analysis of data from fund tracker Lipper showed.Weak gains have already made it harder to justify fees that are sometimes 10 times or more than the cost of a passive fund, which in the case of the most liquid exchange-traded funds can be less than 0.1 percent on a headline level, before factoring in brokerage, transaction and tax costs.The growth in passive funds is reflected in the industry's net revenues, which have remained flat globally for the last four years, according to the Boston Consulting Group, even as funds under management hit a record $69 trillion in 2013 .For Buffett, this meant one thing for the average investor.
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