SINGAPORE (Dec 10): In the last few years, passive fund management has become increasingly popular among investors, as its returns have often outperformed those of active investing. One reason
for this outperformance can be attributed to the ultra-loose monetary policy environment in the aftermath of the global financial crisis in 2008.

But, now, as the US Federal Reserve is expected to continue to normalise interest rates and reverse its asset-purchase programme, passive management may no longer yield attractive returns. Instead, such opportunities may lie with active investing again, according to Liz Ann Sonders, chief investment strategist at Charles Schwab.

Main image: Sonders (right) advocates for a defensive approach in one’s portfolio

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook