Well, according to the recent book Winning with Index Mutual Funds , on Wall Street nothing could be further from the truth.
Most investors end up paying too much in fees for too little in performance.
The answer for most investors, of course, is index funds. As would be expected, much attention is paid to the advantages of index funds. Also included is a very good chapter on how to allocate your investments according to your time horizon and risk tolerance. The authors have a combined 50 years of investment experience, and it shows. Both authors have been through true bear markets and their advice is accordingly on the conservative side.