Active or Passive Fund Management : A comparison between active and passive Swedish funds before, during and after the financial crisis

• Main Authors: Svanberg, Mikaela, Karlsson, Emilia
• Format: Others
• Language: English
• Published: Linnéuniversitetet, Institutionen för ekonomistyrning och logistik (ELO) 2018
• Subjects: Business Administration; Företagsekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-75394

The essay investigates if there is a correlation between a funds management fee and return in relation to the risk that is taken by the investor. Furthermore, the essay examines if it is worth paying a higher fee for an actively managed fund compared to the lower fee for a passively managed fund. In addition, the essay will investigate whether the results differ before, during and after the financial crisis which took place between 2007 and 2009. To answer the questions 38 different Swedish equity funds, 33 active and five passive, are used. The funds are investigated using performance measures, correlation analysis and regression analysis. The results show that there is no clear correlation between funds management fee and return in relation to the risk that is taken. In addition, the essay conclude that it is not worth paying a higher management fee for an actively managed fund.