The Performance of Swedish Actively Managed Mutual Funds Compared to a Broad Market Index Fund
(2023) NEKH02 20222Department of Economics
- Abstract
- The discussion about weather one should pay expensive management fees to let professionals manage your money or if one should simply invest in an almost costless index fund has been going on for decades. This study’s objective is to investigate if the most popular actively managed mutual funds in Sweden can outperform the most popular Swedish passive broad market index fund. The study analyzes 62 different actively managed funds and compares them against an index fund during the time period of 2012-2022. It uses a quantitative research method and generates and compares multiple performance metrics. Earlier studies seem to lean towards a conclusion where no fund manager could consistently outperform the market during any extended time... (More)
- The discussion about weather one should pay expensive management fees to let professionals manage your money or if one should simply invest in an almost costless index fund has been going on for decades. This study’s objective is to investigate if the most popular actively managed mutual funds in Sweden can outperform the most popular Swedish passive broad market index fund. The study analyzes 62 different actively managed funds and compares them against an index fund during the time period of 2012-2022. It uses a quantitative research method and generates and compares multiple performance metrics. Earlier studies seem to lean towards a conclusion where no fund manager could consistently outperform the market during any extended time periods, but the opinions are very split. This study come to no statistically significant conclusion even though a quite clear tendency towards actively managed funds being able to generate systematic risk-adjusted excess returns compared to the index fund was evident. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9106966
- author
- Åstrand, Marcus LU
- supervisor
- organization
- course
- NEKH02 20222
- year
- 2023
- type
- M2 - Bachelor Degree
- subject
- keywords
- portfolio selection, active management, index fund, Fama and French 3-factor model, risk-adjusted return
- language
- English
- id
- 9106966
- date added to LUP
- 2023-06-07 10:46:04
- date last changed
- 2023-06-07 10:46:04
@misc{9106966, abstract = {{The discussion about weather one should pay expensive management fees to let professionals manage your money or if one should simply invest in an almost costless index fund has been going on for decades. This study’s objective is to investigate if the most popular actively managed mutual funds in Sweden can outperform the most popular Swedish passive broad market index fund. The study analyzes 62 different actively managed funds and compares them against an index fund during the time period of 2012-2022. It uses a quantitative research method and generates and compares multiple performance metrics. Earlier studies seem to lean towards a conclusion where no fund manager could consistently outperform the market during any extended time periods, but the opinions are very split. This study come to no statistically significant conclusion even though a quite clear tendency towards actively managed funds being able to generate systematic risk-adjusted excess returns compared to the index fund was evident.}}, author = {{Åstrand, Marcus}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Performance of Swedish Actively Managed Mutual Funds Compared to a Broad Market Index Fund}}, year = {{2023}}, }