John Redwood: There is 'no such thing' as active or passive investors

What makes a good portfolio?

clock • 6 min read

There has been an on and off debate about active and passive management for many years.

The discovery that many fund managers did not manage to beat the share index for the country where they were invested, led to the creation of funds that replicated or mimicked the index. They give you the capital gains and income of your share of the totality of shares in a given market, minus a small amount for the costs of the fund. This has led some to conclude you should buy the passive, to avoid the danger that your chosen investment manager underperforms the index. It means surrendering the hope that they will do better than the index. The debate about whether someone shou...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Funds

Flows into Europe-domiciled funds reach fresh high this year

Flows into Europe-domiciled funds reach fresh high this year

€63bn in October

Beth Brearley
clock 21 November 2024 • 2 min read
Pridham Report: Nearly two thirds of UK's largest fund groups record weaker net retail sales in Q3

Pridham Report: Nearly two thirds of UK's largest fund groups record weaker net retail sales in Q3

Uncertainty among investors reaching a 'boiling point'

Sorin-Andrei Dojan
clock 20 November 2024 • 3 min read
Jupiter plans merger of former Dan Nickols UK small-cap fund by end of year

Jupiter plans merger of former Dan Nickols UK small-cap fund by end of year

‘Materially similar’ funds

Eve Maddock-Jones
clock 20 November 2024 • 2 min read
Trustpilot