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Investment in Actively-Managed Funds

Active Mutual (Investment) Funds


Actively managed investment funds usually are those mutual funds that choose not copy the index (benchmark), but is trying to beat it, so could give for investing person a higher return, and to justify the higher management fees.

Typically, actively managed investment funds fees are the highest (apart hedge funds), and they have a negative impact on the overall fund returns. Some investment fund managers actually manage to outrun the benchmark, but should be recognized, that these are certainly not the majority, apart short term cases. Even if you often will see a statistics where fund management companies provide a data how successfully they beat the benchmark, they can manipulate choosing period. Also management companies try higher risk investment for mutual fund in the beginning, and if it will succeed – the results will last for history, if not – then they just close such fund and start a new one.


Actively managed funds are very popular because this product is  offered by investment banks and other financial institutions the most. These investing products are most profitable for investment institutions and that‘s the main reason of its popularity if ignoring the fact of long mutual funds traditions.



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