Skip to the content

The active vs passive debate: Which side of the fence are you on?

17 September 2014

The September issue of Investazine is on newsstands now. Download your free copy today.

By Jenna Voigt,

Editor, FE Investazine

It’s the million-dollar question that has dominated the industry in recent years – are investors better off in active or passively managed funds? Those in the passive camp argue that no manager can consistently outperform the market.

If you invest your money for long enough, you’ll see gains, so there’s no point in paying the higher fees for active management – especially when those funds often underperform the market.

Active proponents, on the other hand, argue that it is possible for active managers to add value through stock selection, bottom-up fundamentals and macro analysis.

Particularly important is that active managers can position their portfolios to dampen losses when markets do inevitably fall.

We’ve dived into the debate in this month’s issue of Investazine, exploring the pros and cons of both sides in more detail and suggesting how investors can benefit from both approaches.

We reveal the cheapest active funds on the market, examine whether index trackers or ETFs are right for you and even reveal when underperformance is a good thing.

To read these articles and more, download your FREE issue of Investazine here.

ALT_TAG

Editor's Picks

Loading...

Videos from BNY Mellon Investment Management

Loading...

Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.