Mark Dampier: 'If you're not interested in investment, buy passive'

Average fund holding period down 40% in 10 years

Victoria McKeever
clock • 2 min read

People who are not "interested in investment" should stick to passive options, Hargreaves Lansdown head of research Mark Dampier has said in relation to investors' lack of patience with manager underperformance.

"With passive funds, you have no fund manager risk, you only have market risk," Dampier (pictured) explained. Most investors lacked patience which was required when using an active manager, he suggested. "Picking active funds is actually quite difficult," said Dampier. "If you're not prepared to spend the time doing it, you are actually better in passive." The ability to trade unit trusts at a similar pace to shares, he said, was one factor that had helped facilitate client impatience. "Now you can pretty much trade unit trusts as you can shares so what I find is people just gra...

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