🤔Are concerns about the risks of passive investing the only reasons to shift from passive to active funds

16 March 2021

According to my research, the decision to use one or the other is often a finely balanced one. The data show that both investment styles can bring value and it’s time to move away from broad-brush statements about the merits of either. In fact, a broad view of performance across asset classes and categories shows that active/ passive results are decidedly mixed. Fund managers’ performance depends on time frames and market cycles.

I agree with Amin Rajan, that reiterates at the end of the FT article that both active and passive management have a role to play in investor portfolios. Active funds have confirmed their attractiveness in volatile times while passive funds on their side will continue to attract investors focus on costs, liquidity, and research innovation.

👉Taking the right decision to allocate between active and passive funds is key to optimise portfolio performance.

Marlene Hassine Konqui