The Investing Show

Ep 4: 'Do active funds add any value?' with Ian Tonks


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Episode 4 of The Investing Show looks at active and passive investing (and the debate that seemingly surrounds it) with Ian Tonks, Professor of Finance at the University of Bristol. Ian is involved in an ongoing study on domestic active equity funds in the UK.

Anyone who knows the subject, active vs. passive, knows the debate has a clear winner. But are investors viewing low-cost passive funds as a safe option, and is there an intuitive appeal for active funds? Questions are raised on whether it is best to use an active fund manager who actively picks stocks for you? Or should you simply invest in low-cost index funds that attract the whole market?
Finally Abraham dives into the details on why active managers underperform index funds, and why there is a 0% chance of consistent outperformance...and it isn't due to a lack of skill. 👀🤔

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The Investing ShowBy The Investing Show