Why active funds cost savers 190,000 euros and more - a financial expert explains.

Why active funds cost savers 190,000 euros and more - a financial expert explains.

According to a report by www.boerse-online.de, a recent article illustrates the high costs that savers bear when investing in active funds. It should be noted that these costs have a significant impact on asset accumulation and are significantly higher compared to ETFs. An example shows that a 25-year-old saver who invests 25,000 euros in an active fund only earns 180,424 euros after 40 years, while an ETF investor with the same investment amount earns 353,933 euros. This cost difference of 193,000 euros makes the serious effects clear and makes it clear that active funds can hinder wealth creation.

The article emphasizes that in most cases, ETFs are the better choice for savers because only a small number of active fund managers deliver better returns than the market over ten years. As a financial expert, I can confirm that the high costs associated with active funds can have a significant impact on long-term wealth creation. Due to the low fees and costs that ETFs generally have, it is advisable for most savers to choose this form of investment.

These findings from the article show that the increasing popularity of ETFs in the financial markets is well founded. Looking at the market, this could mean that investment volumes in ETFs will continue to increase while active funds become less attractive. The financial industry should therefore increasingly focus on transparent and cost-effective investment products in order to meet the needs of investors. The development towards ETFs could therefore also impact the business models of traditional financial institutions.