by KYW's Steve Tawa

Investors who are now getting shredded year-end portfolio statements already know all too well that they endured a brutal 2008. Some may be wondering about the year ahead.

Since everything tanked last year, other than US Treasury's, there's renewed debate about how best to diversity. Should you play any eventual rebound with actively managed funds that aim to beat their benchmarks, or index mutual funds?

At Turner Investment Partners in Berwyn, senior portfolio manager Bill McVail, says they identify companies with accelerating revenue and earnings growth:

"If you want to own retail, but maybe only the best names in retail, you don't have to own everything in retail and that's where active management, and picking the right names adds value for a portfolio."

Vanguard, the mutual fund complex in Valley Forge, Pa., is known for low cost traditional indexing like tracking the performance the S&P 500 or the total stock market.

Chief investment officer Gus Sauter:

"So you can capture most of a market's rate of return literally only under performing by a fraction of a percentage point."