Active funds vs. ETFs: Why do active funds dominate the Austrian investment market?

Active funds vs. ETFs: Why do active funds dominate the Austrian investment market?

In the world of investments, investors are faced with a variety of decisions when it comes to growing their wealth. One of the ways to invest your money is through funds, which can be divided into two main categories: active funds and exchange traded funds (ETFs). Despite the advantages of ETFs - lower costs and higher returns - active funds continue to dominate the Austrian investment market. A significant portion of Austrian investor capital is tied up in active funds.

The continued dominance of active funds on the Austrian investment market can be attributed to various factors. Active fund managers use their expertise and analyzes to actively invest in individual securities and thus achieve above-average returns. This strategy appeals to many investors who trust the skills of professional fund managers and are willing to pay higher fees for a potentially higher return.

Another reason for the dominance of active funds could be the perceived security they offer investors. Through the targeted selection of securities and the active management of the fund assets, active funds promise a certain degree of stability and the opportunity to take advantage of market opportunities. This security can encourage investors to continue investing in active funds, even though ETFs are often considered an attractive alternative due to their lower costs.