CNBC's Jim Cramer said he spends most of his time telling investors how to pick their own stocks but stressed that he also has advice about how best to passively manage money in mutual funds.
He recommended investors seek out low-cost index funds if they don't have capacity to manage their own portfolios.
"At the end of the day, I think a cheap S&P 500 index fund is the least bad way to passively manage your money — better than the vast bulk of actively managed mutual funds," Cramer said.
But Cramer cautioned against most actively managed mutual funds, arguing that investors can't always trust that money managers will prioritize their clients' needs.
"My main beef here is with actively managed mutual funds, mutual funds where there are people deciding which securities to buy or sell," he said.
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