Exhaustive studies have shown that over the long term, the average actively-managed fund
has underperformed its appropriate passive benchmark by about 1.8% per annum on a pre-tax basis (taking taxes into account would increase this figure to approximately 3%).
PSE president Ramon Monzon said the three-basis-point licensing fee was reasonable given that fund managers charge 200 to 300 basis points of AUM for actively-managed funds
Some large investors in Tesla may not be able to follow CEO Elon Musk in his plan to take the company private as most passive funds would have to drop Tesla if it were removed from stock indexes and actively-managed funds
may need complicated approvals to hold a stake, Reuters reports, citing experts and investors.
In India, actively-managed funds
have consistently beaten benchmarks over the years and are likely to continue to do so in the coming years.
"There's no clear reason to [select them] over actively-managed funds
But she argues that actively-managed funds
offer specific investing strategies that can be very appropriate in volatile markets like the one we're experiencing now.
look to beat the market and can sometimes achieve that.
In the late 1990s, trackers were performing well, but in the wake of falling shares and increased turbulence in global stock markets, actively-managed funds
seem to have taken the lead.
Trackers will produce consistent performance, while with actively-managed funds
it is hard to find a winner.
Moreover, ETFs are passively managed, which is good for retail investors, especially those investing for the first time, as costs are lower compared to actively-managed funds