Banker's Umbrella: Passive investing, is it all that?

Banker's Umbrella: Passive investing, is it all that?

clock

In his third column for Professional Adviser, the quasi-mysterious Banker's Umbrella explores the not-so-simple world of simple investing via passives...

Momentum, what a great word, I particularly enjoyed hearing that word pronounced Mo-menu-mum by an old American friend of mine. Mo-menu-mum is exactly what passive index funds are currently experiencing. In the US alone, in 2013, index funds made up nearly 20% of all investment fund assets, that's a little over one trillion in the Queen's currency! Not bad for what started in 1972 as a single investment fund with starting capital of only £7m. The case for index funds is simple enough: They perform better than actively managed funds. Last year, 85 % of actively managed funds perf...

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

Join

 

Already a Professional Adviser member?

Login

More on Investment

Darius McDermott: Old demographics, new innovations — so why isn't healthcare booming?

Darius McDermott: Old demographics, new innovations — so why isn't healthcare booming?

'The sector should be flying — but it isn't'

Darius McDermott
clock 08 May 2025 • 5 min read
Why China's journey to net zero demands investors' attention

Why China's journey to net zero demands investors' attention

China's journey towards net zero could yet prove more rapid than expected

Gabriel Sacks
clock 07 May 2025 • 4 min read
Morningstar CEO: Advisers and industry need 'shared language' around risk

Morningstar CEO: Advisers and industry need 'shared language' around risk

Kapoor points to UK regulation becoming more ‘goals focused’

Sahar Nazir
clock 07 May 2025 • 2 min read