Active funds failing to beat passives amid technology boom - how should you invest?

AJ Bell data shows most active funds are underperforming. We reveal the regions where machines have beaten managers

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(Image credit: Getty Images/Zapp2Photo)

Active fund managers may sell themselves on being able to outperform the markets over the long term but they are continuing to struggle against passive alternatives amid a technology stock boom.

Research has revealed that only around a third of active fund managers have beaten the average passive fund performance in their sector during the second half of 2024.

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% of active funds outperforming a passive alternative
RegionYear-to-dateFive years10 years
Asia Pacific ex Japan41%28%36%
Europe ex UK39%47%47%
Global18%14%17%
Global Emerging Markets38%48%52%
Japan46%38%52%
North America37%26%23%
UK35%26%40%
Total31%27%33%
Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.