Can a portfolio hold both index and active funds?

Detailed Explanation

Yes, and many do. The choice is not ideological. A common construction uses low-cost index funds for broad, efficient exposures where an edge is hardest to find, and reserves active management for narrower or less liquid areas where selection may add more than it costs. What matters is that the split reflects your goals, time horizon and risk tolerance rather than recent performance headlines — and that you can state why each holding is there.