Fund Survival Rates Vary Wildly for Active Funds
The latest Morningstar Active vs Passive Barometer shows the so-called “Survivorship Rate” of funds over the past 10 years – that is the proportion of those which existed a decade ago and are still around today. Among many of the fund categories, the figures are starkly disappointing even for developed markets such as Europe, US and Japan. Just 43.8% and 48.5% of respectively US and UK Large-Cap equity funds have survived 10 years, and a meagre 36.7% of Japan large-cap equity funds.
