Retail investors favour passives during market sell-off

'Active versus passive debate back in the spotlight'

David Brenchley
clock • 2 min read

Fund investors rotated into passive offerings during March, data from investment platform interactive investor (ii) showed, as the coronavirus crisis prompted a rethink of portfolios.

Eight of the ten most-bought open-ended funds by ii's retail clients were trackers or funds using passive strategies, as recent market volatility "puts the active versus passive debate back into the spotlight". As ever, the £16.7bn Fundsmith Equity and £6.7bn Lindsell Train Global Equity funds were popular, but the pair were the only two actively managed offerings on the list. 'Caution in the air' in February despite £1.4bn inflows into retail funds Vanguard's three more adventurous LifeStrategy mandates headed the passive charge alongside the firm's US Equity Index tracker. "Ag...

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