Further reading: Time to trust in active management

Further reading: Time to trust in active management

The question of whether passive or active fund management is best is a source of intense debate, but conventional finance wisdom is on the side of passive. It may therefore have come as a surprise to some when advisory firm Fund Consultants published research based on 500 investment trusts and 1,500 exchange traded funds (ETFs) that suggested active trounces passive. While the study, published last year, only covered 10 years due to the relative infancy of the ETF industry, the results were compelling. The longer-term results are particularly pronounced, with 90 per cent of trusts outperforming comparable ETFs over the full decade after costs.

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