The Strategy Behind Index Funds and Higher Management Fees

When the index fund became successful, it was inevitable that it would be replicated. However, it came with a low management fee. So, fund providers encourage investors to buy their other funds or let them manage money in a different way to earn higher fees. This contradicts the original purpose of index funds, which was to offer a low-cost option. Despite this, fund providers try to divert attention from this by offering alternative funds with higher management fees.