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Active fund |
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Active fundA fund in which the objective is to outperform the market average by actively seeking out stocks that will provide superior total return. Fund managers have access to extensive research and analysis to help them make the right choices, and one of the consequences of this effort is that the management charges passed on to investors in the fund tend to be high.Contrast this with passive funds like tracker and index funds, which do not try to beat the index, but simply aim to match it by investing in companies precisely in accordance with the constituents of an index. Since this is a mechanical process, the managers of the fund have far lower expenses, and the charges to investors are lower than for active funds (which of course helps fund performance.)Advocates of passive funds point to the fact that many actively managed funds fail to match the index. Advocates of active funds argue that the more investors pile into index funds, the more opportunity for active investment. Plus the only way to better the index is to manage actively.Similar MatchesMost active listMost active listThe stocks with the highest volume of trading on a certain day. Active RiskActive RiskThe risk (annualized standard deviation) of the active return. Also called the tracking error. Active Server PagesActive Server Pages(ASP) - a methodology developed by Microsoft for creating Web pages dynamically. A scripting language (usually VBscript) is used on the server to generate the HTML code for the Web pages, and files have the extension ".asp". Active ManagementActive ManagementThe pursuit of investment returns in excess of a specified benchmark. Inactive assetInactive assetAsset not used in a productive manner at all times. Further SuggestionsActive accountActive income Transactive ads active market Inactive post Inactive stock or bond Active bond crowd active management Active Active fund management |
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