The best of both worlds

etfs and trackers

A portfolio which contains both passive and active funds can provide the best of both worlds for certain investors, but they must have enough risk appetite for equity-based investments

When looking at index tracking funds my theme in this article can be summarised as caveat emptor - beware the buyer - because in tracking all is not what it seems. Index investment management or the passive approach is designed to capture market returns with fund managers using mathematical skills and computer technology to track the market rather than beat it. Active investment management on the other hand provides the opportunity to outperform the market. This is achieved by analysing the economy and or individual companies with the aim of identifying those shares that will outperform. T...