Hello and welcome to this month's edition of Investment
Insights.
As we come off the back of one of the best investment market
years in recent memory, there has been a significant increase in
the number of articles in the press looking at the active versus
passive debate. According to Rice Warner, for the year to June 30,
the median growth fund with a typical asset allocation of 61 to 80
per cent invested in growth assets, returned 15.6 per cent. So the
question that many will be asking is "what did my fund
do?", and if it did better or worse, why? In most cases the
answer is that you were probably in an active fund and were either
lucky (or unlucky) depending on the "call" that your
active manager made. However as noted in
this article from Mark Hubert at Marketwatch, in the long run
the vast majority of professional advisers who try to get in and
out of the stock market at the right time end up doing worse than
those who simply buy and hold through bull and bear
