In the current investment environment it is becoming increasingly difficult to justify high investment costs. Is it time to turn your back on active funds and use passive investments?
Monday 13 June May inflation data for the UK with the CPI (expected +0.3% mom; +0.1% previous), RPI (expected +0.3% mom; 0.1% previous) and PPI (expected +0.3% mom; +0.4% previous) numbers due – all of which should be watched closely ahead of the BoE meeting on Thursday. Tuesday 14 June In the UK, the May […]
It is widely believed that higher risk is equal to greater returns. Therefore, by taking on more risk in the portfolio (by buying more equity for instance) one would expect higher returns in the long run than investing in lower risk asset classes, such as bonds. However, this theory implies that higher investment risk will […]
The asset management industry is vast. With active and passive managers, individuals are constantly on the hunt for the best returns. Many would assume that the best returns come from the active managers as teams aim to beat the market. But some are now saying that the active industry has grown too large to consistently […]
The investment management industry is evolving and there is now a wide variety of investment options available to retail investors. Whether you are looking for an equity, bond or commodity product the main distribution channels now offer access to all of these. Once you have chosen your asset class, the next decision is whether you […]
Many portfolios are managed to a benchmark, typically an index. Investors buy index exchange traded funds (ETFs) and passive mutual funds to achieve the performance of a market index without incurring the fees associated with active stock picking. Not all funds track their indexes as closely as others. The difference between a fund’s performance and […]
Imagine you bought a Ferrari, but you discovered that under the bonnet there was a Fiat engine. In the asset management industry, this is called Index Hugging. This February the European Security and Markets Authority (ESMA), the Authority that contributes to safeguarding the stability of the European Union’s financial system, provided the preliminary details of […]
Why invest in ETFs? Exchange Traded Funds (ETFs) bundle together selected securities, such as stocks, bonds or commodities, and are bought and sold in stock exchanges at a price determined by the market, just like ordinary shares. Typically, the goal of an ETF is to track the performance of a market index, such as the […]