These funds have a higher management fee compared to passively managed funds where the manager simply tracks the performance of a market index.
Actively managed funds refer to investment funds where a designated manager is responsible for making decisions on how to allocate the fund's money. These funds typically have a higher management fee compared to passively managed funds, where the manager's role is simply to mirror the performance of a market index. While actively managed funds may come with a higher cost, they offer the potential for higher returns due to the manager's active involvement in selecting investments.
