Date: 5th October 2016
Author:
Type: In the news
Passive funds - also known as index funds - are passively managed according to a pre-defined strategy, which means that their portfolios mirror the components of a market index.
Research carried out by Charles Stanley Pan Asset now shows that these funds have done better than active funds by 4.73% on average over 5 years in 14 asset classes.
Passive funds, which by their nature are less resource-consuming, are therefore not only cheaper, but also on average more profitable. In plain math, the research claims that a passive pension fund worth €629 million would generate an additional €4,7 million return per year compared to their actively managed counterparts, regardless of their size.
Please find the Funds Europe article here.