Financial Times FT.com

Passive route avoids stock-picking pitfalls

By Rebecca Knight

Published: November 3 2008 02:00 | Last updated: November 3 2008 02:00

Research shows the vast majority of active fund managers do not consistently outperform the stock market - a point that leads many advisers and investors to go the route of index funds.

Take Norm Mindel, an adviser with Genworth Financial. He started his career 30 years ago by investing solely with active fund managers. After "years of being disappointed", however, he moved to a passive strategy in 1995.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this