Active vs. Passive

When it comes to passive investments, do investors understand the risks?

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56% of investors believe passive investments almost always provide greater diversification than actively managed funds.

 
 

Furthermore, 52% of investors believe that as long as you own a broad range of stocks, your portfolio will be adequately diversified.

 

When investors were asked to allocate between active and passive investments based on descriptions of the strategies, investors allocated more to active:


 

Furthermore, 52% of investors believe that as long as you own a broad range of stocks, your portfolio will be adequately diversified.