Investing inactive funds: What’s the point? By Natsuko Waki

 March 19, 2012 Active vs passive investment is a long-lasting debate: active funds will tell you they deliver alpha (extra returns), but for a fee. Passive investment simply tracks the index so it’s cheaper. The risk is you may under-perform your peers. New research from Thomson Reuters Lipper throws up an interesting twist in the debate: It found that less than half of the actively managed mutual funds in Europe outperformed their benchmarks over the past 20 years. …

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