Private investors 'moving back into actively-managed funds'

Holders of private wealth may be interested to hear the opinion of one expert who believes European investors are moving money back into actively-managed funds after a prolonged period of favouring more passive options.

Writing for Financial News, Elizabeth Pfeuti stated the latest figures from data monitor Lipper show the amount invested in passive funds - low-risk investments that track indices - has fallen this year.

However, investment in higher risk, actively-managed funds has risen sharply in the last 12 months to around the same level as 2007, she continued.

Ms Pfeuti added that passive funds are still relatively popular compared with pre-recession levels though, despite underperforming riskier choices by several percentage points.

"Inflows into passive funds have remained above pre-crisis levels as some investors are convinced of their worth," she commented.

Market confidence regarding the eurozone's ability to recover from its recent series of crises meant European equities reached their highest levels for over two years earlier this week, Reuters recently reported. ADNFCR-2318-ID-800281376-ADNFCR