The number of investment products has proliferated to the point that they are confusing retail investors, top asset management executives have warned. The asset management industry rushed to diversify its offerings in response to customer appetite for low-cost mutual funds and ETFs as well as less traditional alternative investments such as real estate and private credit. Large-cap growth funds alone total more than 550. But top executives offering some of these products say this rapid expansion has complicated investing.
“On one hand [more choice] is quite good, but at the same time . . . investors have to evaluate more options and alternatives,” Robert Sharps, chief executive of T Rowe Price, which has $1.3tn under management, said in an interview. “This creates confusion and uncertainty that is in many ways more difficult for the end investor.”
https://www.ft.com/content/da561eeb-838d-48b6-891a-a87c2dc089e0?shareType=nongift