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 ?
Actively managed funds experienced their worst monthly inflow in five months with $7.
While Abbey National charges only pounds 474 and M&G pounds 606 over 10 years, the Scottish Amicable Tracker would cost you pounds 2,390, for example - more than some actively managed funds.
And it gives more support to the computer-run tracker funds against the actively managed funds where City experts look after their money.
Sponsors may also choose among low-cost Vanguard money market funds, actively managed funds, and ETFs, as well as non-Vanguard active funds and stable value funds.
tv, a new website designed to provide information and opinion about passive investing and the use of index funds, which automatically track an entire index, usually at a much lower cost than actively managed funds.
1 trillion in 2011, and index funds, for obvious reasons, are considerably cheaper to run than actively managed funds.
They say that index funds, which just follow stock markets, beat actively managed funds when times are tough.
The report said Vanguard and Schwab drove the online channel's growth, offering a broad range of index and lower-fee actively managed funds.
Typically, actively managed funds have higher annual management charges than passive funds.
Actively managed funds can be big winners - and big losers - and they charge more than trackers.
UCITS are actively managed funds that operate under a pan-European set of regulations and are more liquid and transparent than hedge funds.
Actively managed funds staged a strong comeback in the 12 months ended June 30, with roughly 52% of all domestic equity funds outperforming the S&P Composite 1500 index.