Actively managed fund

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Actively Managed Fund

A pool of liquidity with a portfolio that an investment company trades actively in order to meet the fund's investment goals. For example, an actively managed fund may have a target return or a target level of risk. If the target is not being met, the investment company managing the fund makes appropriate trades in order to correct the situation. Mutual funds are actively managed funds. See also: Index fund.

Actively managed fund.

Managers of actively managed mutual funds buy and sell investments to achieve a particular goal, such as providing a certain level of return or beating a relevant benchmark.

As a result, they generally trade much more frequently than managers of passively managed funds whose goal is to mirror the performance of the index a fund tracks.

While actively managed funds may provide stronger returns than index funds in some years, they typically have higher management and investment fees.

References in periodicals archive ?
The portfolios emphasize the selection of actively managed funds that have both high manager ownership and low expense ratios.
Alternative asset classes bring valuable non-correlated exposure but demand dedicated, actively managed funds to optimise profits.
QI got chatting to an old school friend about investments and the benefits of actively managed funds over passive funds.
Mohan, Head of Equities at Principal PNB Asset Management Company, suggests investing in actively managed funds over the next five to six years as he feels they can potentially offer higher returns in a growing economy like India's.
6 per cent for actively managed funds while indextracker OEICs have charges of up to one per cent.
First, it showed, using actual data, that the commonly held belief in the relationship between low fees and higher returns really only applies to index funds, not actively managed funds.
There are four types of mutual funds: Index, exchange-traded, target-date, and actively managed funds.
The results suggest many retirees could get more mileage from their nest eggs by paring costs -- either by jumping ship from a former employer's high-cost 401(k) plan, or by ditching high-cost actively managed funds.
Tempesta tried the individual-stock approach first, then tried actively managed funds.
2) These charges, the 1%, 2% or in some cases even more, are one of the main reasons why the majority of actively managed funds fail to beat the returns of the index*.
Private clients' advisers in conventional banks also report including Sharia-compliant ETFs in client portfolios in combinations with actively managed funds and structured products.