Personal Pension  

Asset allocation for pensions: active or passive?

The debate between ‘active’ and ‘passive’ investment philosophies has been running for decades. Proponents of active fund management will wax lyrical about the potential benefits of fundamental research or quantitative processes, particularly in markets that are not entirely efficient. The only thing you can be sure of with passive approaches, they say, is that you or your client are bound to underperform the index being tracked, even if only by a little bit. At least with active funds you have the chance of beating it.

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