Active versus Passive fund performance : A quantitative study in risk-adjusted return between actively and passively managed equity funds from 2010 until 2021 including the COVID-19 pandemic

Sammanfattning: The following paper is a quantitative study that examine whether actively managed equity funds have a higher risk-adjusted return than index funds. The study uses the performance measurement Sharpe ratio to determine the risk-adjusted return for the funds. The time-period of the examination was between January 2010 until December 2021. We also examined whether actively managed equity funds have a higher risk-adjusted return than index funds during the Covid-19 pandemic. The study shows that there is no significance in risk-adjusted return between the actively managed funds and the passively managed funds.