Morningstar Uk: Podcasts

Using Active and Passive Funds for Investment Success

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Synopsis

This month we focus on how to invest using active and passive funds. Fans of passive investment often cite the cost of active management as a negative factor. But smart investors should consider more than just the price of a fund. Morningstar Editor Emma Wall speaks with Chris Traulsen, Head of Research for Morningstar on what else to look out for when choosing a fund other than its price. Predicting how much a fund investment costs – whether it is active or passive – is near impossible says Emma Wall. Should flat fees become an option for the future? With passive funds often performing just as well as actively managed funds at a fraction of the cost, why pay for active management? Active management is critically important for a functioning economy - as well as investors, says Mark Burgess from Columbia Threadneedle. Especially when stock markets are expected to move sideways. Passive funds are precise tools that asset allocators can use to get exposure to different markets - although they