Managed funds, are mutual funds or exchanged traded funds that are managed by professionals.

On the whole, index funds are much cheaper (i.e. lower management fees) than professionally managed funds. However, managed funds can be utilised so make up a smaller component of your overall portfolio (This is called the 'Funny Money' section of my portfolio)

One interesting piece of research on managed funds was presented by John C. Bogle in “The Relentless Rules of Humble Arithmetic,” in the Financial Analyst Journal,
November/December 2005.

Two charts he presented in the article struck me as really insightful and offer some guidance in selecting a managed fund.

The more funds a company offers, the lower the returns

Funds from private companies perform better than Financial Conglomorates and Publically Traded companies

Suck down this data with a grain of salt. Correlation does not always imply causation.

This provides you with another two additional perspectives, in which you can use to analyze a managed fund and whether or not to invest. However, you will also need to do the standard due dilligence by reading the fund prospectus, background checking the fund manager, considering tax implications and many other factors.

Interesting stuff.