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Explained- What Are Actively Managed Funds

What Is Actively Managed Fund

What Is Actively Managed Fund

This post is all about what an actively managed fund is.

An actively managed investment fund is when a manager or a management team invests the fund’s money. Actively managed funds can outperform the market but often don’t, and they usually demand a higher fee.

Actively managed funds can be unpredictable, so before investing in one, you must read it’s investing strategy and the fund’s history to learn about its past returns.

When To Consider Investing In Actively Managed Fund

Active management may be worth considering if you’re looking for an investment strategy that can outperform the market with the human touch of a fund manager. Active management aims to outperform a certain market index or, in the event of a market downturn, to post losses less severe than those suffered by the index.

A fund manager’s skill set, skills, experience, and judgments are put to the test when managing money. A fund manager, for example, may have substantial knowledge in the technology sector. As a result, they can potentially outperform benchmark returns by leveraging their knowledge and skills. However, many times this does not happen and index funds beat actively managed funds.

We’d love to know what type of investor you are. Do you like control and prefer to do everything yourself online, or do you trust putting your money in the hands of a fund manager to take care of your money and make it grow? Let us know in the comments section below.

If you would like to learn more about investing and escape the rat race you must check out this premium course hosted by Robert Kiyosaki.

 

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