You are here: Home - Investing - Experienced Investor - News -

Investors lose patience with active managers

0
Written by: Adam Lewis
15/09/2016
Attracted by lower fees and questions over the effectiveness of actively managed funds, retail investors are increasingly turning to passive funds according to new research.

Between 1 July to 11 August 2016 (the first half of the third quarter) online investment platform rplan reported a 248% spike in gross inflows by self-directed investors into passive funds, when compared with the same period last year.

Covering the time period shortly after the Brexit vote, net inflows into index tracking funds were up 159% versus the same time period last year, while active funds saw only a 72% rise. However, in terms of volume, flows into passive funds still only amounted to a third (32%) of those into actives.

Stuart Dyer, CIO at rplan, said: “On the whole, investors are increasingly interested in passives and we have seen this too in their rising prevalence on our list of popular funds.”

According to Dyer, this evidence points to investors’ growing awareness of costs and the extent to which they now question the value added by active managers.

“However, while charges should indeed be a consideration, it is much more important for investors to understand the risk exposure of the funds in which they invest and to ensure that they have a balanced, diversified portfolio to meet their financial goals,” he added.

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape for summer, and moving your cash savings to a higher paying deal is ...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
retirement
FCA reveals ageing population strategy proposals

The Financial Conduct Authority (FCA) is preparing to undertake work in six key areas to combat poor access and choice...

Close