Investors 'twice as likely' to choose active funds over trackers - Lipper

Retail investors are twice as likely to pay more for actively-managed funds than reduced costs for index trackers, research from Lipper has revealed.

A study looking into fund charges showed £56.6bn is invested in funds of funds compared to £30.5bn invested in index tracking funds. Lipper said this shows investors are willing to pay more for fund selection rather than choose a passive vehicle. Commenting on the recent debate on fund charge disclosure, Ed Moisson, head of UK & cross-border research at Lipper, said: "Having been researching this subject since 1999, I continue to believe that transparency and awareness of the ‘drag' of charges on returns are crucial for long-term investors." However, he added that while a single figur...