The argument for active management

Active management has been getting a bad rep lately. The onset of the Retail Distribution Review (RDR) has brought fund charges firmly into view, and all the predictable noises are being made about how much better value passive funds are. But this view fails to take into account the full benefits of active funds and how, when they are used correctly, they offer much better value for investors, regardless of fees. There has been plenty of research into the benefits of active management, some favourable, some not. The widely accepted conclusion however, is that, on average, most active ...