The Case for Active Investment Management

Much has been written to assert the superiority of passive over active investing. Net of fees, it appears that on average passive management has produced higher returns. The recent shift of money out of active and into index funds (see Figure 1 for equity funds) reflects the response by investors to this argument (amongst others) and is taken as proof that investors are giving up on active fund management. A resounding consensus has emerged that this trend will continue.... Please click here for full article...