The vast majority of actively managed funds are poor value, according to Hargreaves Lansdown.
Yesterday the FTSE 100 company cut the number of funds on its buylist to 60 from 85, with a number of large and well-known funds on the list.
Hargreaves Lansdown declined to provide details on how much extra capital a fund can attract just by being included on its buy list, but it did say the impact was "significant".
As Hargreaves grows as a business, the number of its clients has risen - reaching 1.1m in October - but the number of funds on its buylist has fallen.
Mr Cox said he was not concerned about the risk of funds performing badly, creating lots of unhappy clients and, with fewer funds, the risk of a number of them dragging down the performance of the list as a whole.
He said: "The vast majority of active funds are not good value and we believe a key part of our role is to help people to make good decisions and invest in the better funds.
"The Wealth 50 is designed to help clients make good decisions and invest in funds which have, in our view, the best prospect of good long term outcomes."
One of the features of Hargreaves Landown’s buy list is the discounts it secures from fund houses that have funds on the list.
The company said it has used the opportunity of refining its list to negotiate newer discounts, and the willingness of a company to offer a discount was a consideration to being included on the list.
All of the funds to make the list came with a discount.
Hargreaves Lansdown said the average discount on a fund’s charge was 0.3 per cent.
Among the large funds to offer a discount to Hargreaves Lansdown is the Artemis Global Income fund, 0.2 per cent, and Fidelity Moneybuilder Income, and Woodford Equity Income, which comes at a discount of 0.25 per cent.
Woodford Equity Income has had a notably torrid period of underperformance in recent years, losing 7.84 per cent over the past three years while its sector, the IA UK All Companies, gained 21.41 per cent.
And while in recent months it has continued to lose ground, it has done so at a slower rate than its sector, losing 6.62 per cent in the past six months compared to the 9.9 per cent lost by the IA UK All Companies sector.
Fidelity Moneybuilder Income and Artemis Global Income have also both underperformed their sectors over the past three years.
damian.fantato@ft.com
