Actively managed fund

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 idea of RIK service was prompted by the idea of actively managed ETFs, and attempts to blend the investment flexibility of an actively managed fund with the efficiency of an index-based ETF.
An actively managed fund can benefit from a highly experienced manager's ability to deftly navigate shifting market conditions in an effort to increase potential return," said George Goudelias, managing director at Seix Investment Advisors, a boutique investment firm owned by RidgeWorth.
The Cambria Shareholder Yield ETF is an actively managed fund that employs a quantitative algorithm to select 100 U.
An actively managed fund has a more hands-on approach and would make regular use of market timing and stock picking.
Adjusting realized fund returns to remove avoidable structural costs, 55% EW and 65% AW of actively managed fund shares benchmarked to major U.
The average ongoing management expense of an actively managed fund is about one percentage point more than those for passively managed funds like the index funds in Tier Two.
The investor will pay lower charges than what he would have to pay for an actively managed fund,' said managing director Krishnamurthy Vijayan.
Your best chance is to invest through an actively managed fund, where someone is picking stocks.
The former is an actively managed fund with a 150% annual portfolio turnover rate.
A EXISTING customers will be able to invest more but in the longer term a closed fund may not do as well as an actively managed fund.
Here you would be looking perhaps at a proven track record and perhaps charges although this should really be low on your priority list as cheap costs don't necessarily mean good value in the long term for an actively managed fund.
Since the fund is managed by computer, expenses are lower than an actively managed fund.