Active fund - A fund in which the objective is to outperform the market average by actively seeking out stocks that will provide superior total return. Fund managers have access to extensive research and analysis to help them make the right choices, and one of the consequences of this effort is that the management charges passed on to investors in the fund tend to be high.Contrast this with passive funds like tracker and index funds, which do not try to beat the index, but simply aim to match it by investing in companies precisely in accordance with the constituents of an index. Since this is a mechanical process, the managers of the fund have far lower expenses, and the charges to investors are lower than for active funds (which of course helps fund performance.)Advocates of passive funds point to the fact that many actively managed funds fail to match the index. Advocates of active funds argue that the more investors pile into index funds, the more opportunity for active investment. Plus the only way to better the index is to manage actively.
Active fund : a fund in which the objective is to outperform the market average by actively seeking out stocks that will provide superior total return. fund managers have access to extensive research and analysis to help them make the right choices, and one of the consequences of this effort is that the management charges passed on to investors in the fund tend to be high.contrast this with passive funds like tracker and index funds, which do not try to beat the index, but simply aim to match it by investing in companies precisely in accordance with the constituents of an index. since this is a mechanical process, the managers of the fund have far lower expenses, and the charges to investors are lower than for active funds (which of course helps fund performance.)advocates of passive funds point to the fact that many actively managed funds fail to match the index. advocates of active funds argue that the more investors pile into index funds, the more opportunity for active investment. plus the only way to better the index is to manage actively.
Active fund