Smaller funds are more effective at stockpicking and actively managing investments than larger funds...
Smaller funds are more effective at stockpicking and actively managing investments than larger funds, according to recent research from Standard & Poor's. The report said among UK All Companies funds, the larger the portfolio becomes, the more likely it is to replicate the market as a whole, meaning investors looking for active, stockpicking funds may be paying over the odds for what appears to be closet index tracking. Smaller funds, on the other hand, can take advantage of opportunities large funds cannot enter into without ending up with a significant shareholding in the target securit...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes