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Active funds dying as ‘lacklustre performance’ leads to survival struggle

Global equity funds were among the worst long-term performers

Passive funds have seemingly better odds of survival in the long run
Passive funds have seemingly better odds of survival in the long run Photo: AFP/Getty Images

Chronic underperformance is responsible for the death of active funds in Europe, as index trackers continue to outshine human stock pickers in almost every investment category.

According to research from Morningstar of almost 30,000 European funds overseeing €6.7tn, the 10-year success rate for those that are actively managed were less than 25% in nearly two thirds of the investment categories studied.

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