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.
TERM ID: 16