Speculative Research On Investing And Public Becoming More Aware Of Passive And Tracker Funds
We have been involved with this style of investing for many years now, and although it is very plain to us that it (in our opinion) is the most robust and academically proven route to investing one 's capital (as opposed to investing in alternatives, such as 'active ' funds), it has taken some time to become more mainstream.
Now, however, there is much more coverage in the press about this way of investing, and Richard Saunders, Chief Executive of the Investment Managers Association commented recently that passive funds had experienced a 12% rise in the value of the amount of money being invested in them in 2011 as compared to 2010.
Some of the media coverage included 'This is Money:
"Investors ditch expensive fund managers for trackers. Despite the vast amounts of money still being thrown at active fund managers, the average UK fund has been beaten over five years by ones which blindly follow the FTSE All Share."
Then there was the meeting of the North East branch of the Institute of Financial Planning (IFP) Ray & I attended. There were some good speakers, including Tim Hale, author of 'Smarter Investing ', whom we have met many times before.
Tim is excellent at pointing out the merits of passive funds and presented to us an example of how hard it is for an active…