Market data shows dumb money moving away from managed funds and going into passive index funds

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by LateApostate

The Investment Association keeps a pretty good track of it

https://www.theia.org/news/press-releases/net-fund-flows-remain-positive-while-fixed-income-funds-turn-outflow#:~:text=Tracker%20funds%20saw%20net%20retail,6%25.

Calastone published figures that show that active funds have seen outflows of USD 8.5 billion from retail investors, while passive funds have seen inflows of USD 6.7 billion in the UK.

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Moving into tracker funds has been boasted as a safe bet and generally accepted as a smart move given very few can actually consistently beat the market. But since when are retail investors doing the smart thing, right? Weird.

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Have you recently moved money into passive/tracker funds? If so, what got you in this mindset?What’s the psychology here…?


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