Active Management
Money managers attempt to "out-select" or "time" the markets. Due to a high degree of market efficiency, science has proven that this approach only increases costs and taxes and ultimately results in underperformance.

Index Investing
Those who realized that active management doesn't work often lean towards index investing. this dramatically lowers costs, but has two major flaws: 1) Indices were designed as tracking devices, not investment vehicles. 2) Funds are bound to the index composition resulting in trading inefficiencies and no flexibility.

Structured Investing
Mutual funds by Dimensional Fund Advisors are based on the Science of the Markets. The funds carry no sales charges or commissions and are true "no load" mutual funds. These funds are structured based on the types of risk that offer greater expected return. They carry a large number of stocks and limit the risks that do not bear compensation.

3 Types of Investing