Reduce your investment costs and indexing will impact your results.

The effectiveness of indexing as an investment strategy has clearly taken hold, as evidenced by the difference in cash flows between active and passive strategies( both equity and fixed income) over the past few years.

Yet misconceptions remain.

Indexing works because of the cost-matters hypothesis (Bogle, 2005), which states that "whether markets are efficient or inefficient, investors as a group must fall short of the market returns by the amount of the costs they incur."

Makes sense, after all if your in a fund that mimic's the S&P 500, yet has high cost or the fund manager lag's in returns, by not owning all of the index, will not achieve the return of that given index.

It is said, that 80.00% of fund managers do not beat their given bench mark. 

By selecting index funds, while the allocations are managed in a managed account, rather than investing through some mutual funds, you'll have a better tax sensitive result.

Let me explain, in simple terms.  Funding your investments through a managed account avoids, commissions, high cost's associated with some funds, and not having control of the capital gains, since gains are declared by the fund manager, not you, because your investing in a pool with other (mutual investors)!

A big difference than investing through a managed separate account. Aside from this, index funds, known as (ETF's) exchange traded funds, costs are very low in comparison to most opened-end mutual funds.

In the interim, let me know what you think and I'll send along some FYI, to help you become a more efficient, savvy investor.