Europe’s fund phobia
The mutual-fund industry has demography on its side. But it will not prosper in Europe until it teaches its potential customers to love equities
AS ANY fund manager will tell you in exasperation, European investors are not the bravest of souls. Despite attempts to lure them into the invigorating world of equities, they cling to the presumed safety of bonds and cash, the dull investments they know best. This timidity is in stark contrast with America, where retail investors dive headlong into equity funds with the gentlest of prodding, showering fees on the mutual-fund industry as they do so.
This article appeared in the Finance & economics section of the print edition under the headline “Europe’s fund phobia”
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