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The Performance of Swedish Actively Managed Mutual Funds Compared to a Broad Market Index Fund

Åstrand, Marcus LU (2023) NEKH02 20222
Department 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:
author
Åstrand, Marcus LU
supervisor
organization
course
NEKH02 20222
year
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}},
}