Ten reasons to choose active management

While the growth in passive investing has arguably been the single most considerable stock market development for a generation, there are at least ten reasons why active is still attractive.

Ironically, as more assets continue to flow into funds looking to replicate a benchmark, either explicitly or secretly via closet indexing, opportunities increase for truly active managers to exploit the market inefficiencies it creates. So, how do you give yourself the best chance to pick a winner?

Let's start by exploring the below top ten reasons:

  1. Exploit market inefficiency

  2. Niche market advantages

  3. Better resource allocation

  4. Stewardship

  5. Higher returns

  6. Value for money

  7. Risk management

  8. Flexibility

  9. High conviction in best ideas

  10. Long-term thinking

Continue Reading More Here

Previous
Previous

Why Individual Investors Should Consider Seeking Alternative Credit

Next
Next

Swing in Small Value Stocks Shows Benefits of Staying the Course