There are many reasons why you may wish to include (higher-fee) actively managed funds over (lower-fee) index mutual funds or other lower-fee alternatives. According to experts at Forbes, if you cannot identify a lower-cost fund that offers you diversification in a specific category of investments, you may have to invest in one that does, even if it charges relatively more in expenses. If the manager of the fund is very good at identifying and investing in a properly diversified portfolio, investors may have to pay higher fees to benefit from these selections.