Passive investments may become basic method of

Passive investments may become the basic method of earnings

According to John
Rekentalera, vice-president of the Center
Morningstar research, passive
investment when using index
tracking mutual funds and ETF,
It is now an almost basic
approach in the market.

He points out that
Passive products captured 68% pure
sales for the 12 months (from June 2013 to
June 2014). Active mutual funds
mostly inefficient and costly
funds, where professionals work,
trying to beat the market-driven,
to get only 32% of the cost
of net sales.

"active managers
go to the periphery", – said Rekentaler
the publication on Wednesday in Morningstar edition.

ETF funds (less than 1% of them
are active funds) in terms of
the market share occupied by 35%, whereas passive
mutual funds obtained 33% pure
sales, and as a result the overall share of
68% of the market for passive products for
annual period.

If you start to learn
sales data more deeply, it is
It seems even bleaker for those who hold
active stocks. "If not for the international
and target-date funds flows,
active action is not taken in the past year
I have a penny of new money"- he wrote
he.

However, the active
International equity funds continue
to attract investors. But they
generally not as successful as they were
in the 1990s. This sounds very similar to the
Dallas Cowboys (national football team
It was the most successful in the 90’s) but …
let’s go back to the version Rekentalera.

"active managers
international fund were pretty
degree at the peak of success in the 1990s,".
– he says. “These managers are just falling
down in this decade of downward
Japanese shares, which led to total
tendency among investors to gain
funds within the country and to invest
their activities abroad. ” And now, it seems,
We need to re-do the “inoculation”
to sales success continued.

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