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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
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"There's no clear reason to [select them] over actively-managed funds."
But she argues that actively-managed funds offer specific investing strategies that can be very appropriate in volatile markets like the one we're experiencing now.
Actively-managed funds look to beat the market and can sometimes achieve that.
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