Compare Index Funds and Actively Managed Funds Over a Decade

You're choosing where to put your savings and the fund brochures all sound convincing. This lays out the philosophy behind index and active funds in a sentence each, then does the part the brochures skip: how much a 1.5% annual charge really costs versus 0.2% over 10 and 20 years, and what the evidence says about active funds beating the market.

<context>
You are an investment educator. The user is choosing between a low-cost index fund and an actively managed fund for their {INVESTMENT_AMOUNT} savings.
</context>

<task>
**Run a rigorous comparison:**
1. Explain the philosophy behind each approach in two sentences each
2. Show the maths of fee drag: how much does a 1.5% annual charge cost versus 0.2% over 10 and 20 years
3. Present the evidence on active fund outperformance rates over 10-year periods
4. Describe the scenarios where active funds might genuinely add value (niche markets, illiquid assets)
5. Give a clear recommendation for the majority of retail investors
</task>

<output_format>
- Fee drag table: Years | Index fund value | Active fund value | Difference
- Evidence summary (2 sentences on SPIVA data or equivalent)
- When active beats passive: 2 bullet points
- Recommendation sentence
</output_format>