Active vs Passive investing

bigadaj

Linton wrote: »

Without public data being available you cant. My anecdotal evidence is that in the past 10 years or so as far as I can remember I have only had one fund shut down and that was actually first in its sector the previous year. The other factor is that presumably those people in such funds are moved to other more successful ones. There was an academic paper referenced by "The Tracker" last year which I read and I noted that it happened to say that the survivorship factor was relatively small. So dont know. I believe that if you stick to mainstream funds with the major fund managers that it's not that important and that those closures that do happen are more to do with fund manager mergers and removal of small uneconoomic funds than poor performance, but who knows?

A quick google shows up a vanguard article from March 2015. You could argue that this is passively biased but I would have thought that would refer to being selective about their arguments rather than fiddling the actual data.

This shows significant bias for some sectors, U.K. And European equity primarily, but far less so for bond funds and us equity.