Hi Omar, I don't always advise getting out of mutual funds but nearly always! The reason is that the fees are very high particularly here in Canada (highest in the world). Anytime an investor is paying more than 1% I question why and would look carefully at the specifics of the fund. With regard to bond funds and active management - sure there may be one or two that do well but I wouldn't be a buyer of a bond fund unless the fees were well under 0.5%. Here is an excerpt from an article (paywall) written in January 2023 by a former bond fund manager for the Globe and Mail:

"To start, there are two considerations. The first and most important one is costs. Investors are all too often fooled by not factoring in what these are, especially over the long run. Many investors pay too much through high fees in mutual funds.

Although an investor may be okay with paying more than 1 per cent in annual fees for a standard diversified bond fund, it is a mistake.

Let’s take a simple mathematical calculation. If one invests $100,000 over a 20-year period and bonds return 4 per cent annually before fees, that investment – assuming the interest is reinvested – will be worth $219,112. If those bonds were in a mutual fund with a 1.1-per-cent fee, the investor would be left with $177,136 – $41,976 less. That is more than 40 per cent of the original investment. If the investor had chosen an exchange-traded fund at a cost of 0.1 per cent in fees – which is typical these days – they would have $214,937 – $37,800 more.""