| dc.description.abstract | Investing and saving have always been integral aspects of human behavior. Saving essentially represents deferred consumption, as individuals set aside money for future use. In recent years, saving and investing have become more accessible to the general public due to the digitization of banks and the rise of online banking, making financial markets more approachable. Money is a critical resource that enables individuals to meet their needs and achieve their desired lifestyles. By saving, individuals can attain greater security and flexibility. Our society has become increasingly consumer-oriented, with consumption at an all-time high. To sustain current and future consumption, individuals need to save money. This growing demand and interest in investing have prompted financial markets to expand their offerings, making it more challenging to navigate the investment landscape. This study will focus on financial theories and models such as the Sharpe ratio, Treynor ratio, and Jensen’s alpha to help guide investors through the complexities of the modern investment climate. A major contribution of this study is to provide insights on how to invest to maximize potential returns while balancing the desired level of risk in financial crises like the Corona pandemic. The goal is to offer a comprehensive understanding of the strategies and considerations involved in making informed investment decisions regarding active managed funds and passive index funds on the Swedish stock market. To accomplish this, 47 active funds and 20 passive funds on the Swedish market have been examined. The performance of these funds in relation to their risk was studied across two periods: before the Corona pandemic, from January 2015 to December 2019, and during the pandemic, which lasted from 2020 to May 5, 2023. The implications of this research are significant, as it equips investors and financial professionals with the tools needed to construct fund portfolios with active and passive fund options that align with their risk tolerance and return expectations. The results of this study indicate that active funds generated higher returns before the pandemic, while passive funds generated higher return during pandemic. When risk metrics were taken into account, active funds managed to achieve better performance. However, passive funds proved to be more resilient against financial crises with lower volatility. | sv |
